China says its trade record globally beneficial


China's government defended its trade record as a benefit to the world in a new effort Thursday to defuse U.S. and European pressure over market access and technology policy.

A Cabinet report repeated promises to cut tariffs and open more industries to investment. But it didn't address complaints about plans to create Chinese global technology competitors that are at the heart of a spiraling trade dispute with U.S. President Donald Trump.

The report highlights the clash between Beijing's insistence it has honored market-opening promises made when it joined the World Trade Organization in 2001 and arguments by Washington, Europe and others that Beijing improperly hampers access to emerging industries and steals or pressures foreign companies to hand over technology.

Trump's threat of tariff hikes on up to $450 billion of Chinese products reflects fears Beijing's plans are a threat to American technological leadership and prosperity. China has tried to recruit Europe as an ally in the dispute but faces complaints by Germany and other governments that it bars purchases of Chinese assets while its own companies are on a global acquisition spree. The report was the latest effort by President Xi Jinping's government to deflect pressure to change development tactics by highlighting the benefits of trade with the world's second-largest economy.

Beijing has offered to narrow its multibillion-dollar trade surplus with the United States but has resisted pressure to roll back a state-led industry strategy seen by Communist leaders as a path to prosperity and global influence. The dispute with Trump has allowed China, the most closed major economy, to position itself as a defender of free trade.

This week, Beijing and the European Union (EU) announced they will form a group to work on modernizing WTO rules to keep pace with developments in the global economy. Chinese officials have tried to appeal to Europe by promising to buy more of its farm goods and saying its companies are welcome to invest.

They repeated that message during visits by German Chancellor Angela Merkel in May and French Premier Edouard Philippe this week, though they did not address complains about market and investment barriers.

Merkel and other European officials are frustrated by Trump's tactics but say they are not allying with Beijing.