China urges US to lift sanctions as trade tensions escalate ahead of elections

The United States and China on Tuesday raised concerns about trade between the world's two biggest economies, with China's commerce minister urging Washington to lift sanctions on his country's firms "as soon as possible".

Chinese Commerce Minister Wang Wentao's call with US Commerce Secretary Gina Raimondo was described by Beijing as "candid, in-depth and pragmatic".

It comes shortly after sharp US tariff hikes on Chinese electric vehicles, EV batteries and solar cells took effect -- with levies down the line on other products also recently finalised.

In addition, the United States is planning to ban the sale of connected vehicles incorporating Chinese and Russian technology, citing national security risks.

Washington has also restricted technology exports to China such as semiconductors and the machinery used to manufacture them.

On Tuesday, Wang "focused on expressing serious concerns about US semiconductor policy on China and its restrictions on China's network-connected cars," said a statement from Beijing's commerce ministry.

Wang "stressed that it is particularly necessary to clarify national security boundaries in economic and trade fields".

That would allow for "maintaining the security and stability of global industrial and supply chains", the ministry said.

But a separate statement released by the US Commerce Department said Raimondo had reiterated that US national security is "not negotiable".

She pointed to the US government's approach of being targeted with security policy "while leaving space for healthy trade and investment", the statement said.

Raimondo flagged ongoing concerns as well from US businesses about China's "decreasing regulatory transparency", non-market policies and industrial overcapacity, the US statement added.

Meanwhile, Beijing urged Washington "to attach importance to the specific concerns of Chinese companies, lift sanctions on Chinese companies as soon as possible, and improve the business environment for Chinese companies in the United States".

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Getting back on ‘correct track’

Recent tariff hikes targeting $18 billion in Chinese goods came weeks before November's US presidential election, with both Democrats and Republicans pushing a hard line as competition between Washington and Beijing intensifies.

US President Joe Biden has largely maintained tariffs imposed by former president Donald Trump, which impacted some $300 billion in goods from China. The hikes this year affect earlier products and added ones.

The United States defends its restrictions on sensitive high-tech goods as aimed at limiting Chinese companies' access to cutting-edge equipment purchased abroad, particularly for military purposes.

China has condemned those curbs as "protectionist".

And on Tuesday, Wang said trade ties between the world's two largest economies "should become the ballast of bilateral relations".

Beijing, he said, was willing to push "China-US economic and trade relations back on the correct track".

The US Commerce Department noted that both sides have "agreed to maintain an open channel of communication in the coming months".

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