China's top economic adviser in US to try to smooth trade tensions

China’s top economic adviser Liu He is in Washington to try to smooth trade tensions between the two countries.

Liu’s visit comes as China warned it would take action against any American imposition of stiff duties on Chinese aluminum products.

A trusted economic adviser to Chinese President Xi Jinping, Liu is said to have his finger on the nation's economic pulse. That may explain why Beijing has sent him to Washington.

The visit comes amid a cross-Pacific trade spat that has been quickly escalating. In December, US President Donald Trump labeled China a “strategic competitor.”

A US solar factory in California.

This week, the US Commerce Department announced anti-dumping tariffs of 49-106 percent on imports of Chinese aluminum foil. Additional duties will be applied for what the US says are “unfair subsidies” received by Chinese producers. It’s a significant sector, with US aluminum foil imports worth nearly 400 million US dollars a year.

Wang Hejun, head of trade remedy at China’s Ministry of Commerce, said in response that “the United States ignored rules of the World Trade Organization and seriously damaged the interests of Chinese aluminum foil exporters.”

Wang’s ministry has vowed to protect Chinese trade interests.

China agreed this week to remove its own anti-dumping duties on American broiler chickens following a WTO ruling against Beijing.

A worker is seen at a port in Shanghai.

These are just some of the issues that form the backdrop for Liu’s visit, as he meets with the Trump administration’s top trade officials. They include US Treasury Secretary Steve Mnuchin, economic adviser Gary Cohn and US Trade Representative Robert Lighthizer.

It’s unclear if Liu will meet with Peter Navarro, a China critic who was sidelined last year by more moderate voices in the White House. Navarro is widely reported to be on his way back, with a new title of assistant to the president. In that capacity, it is expected Navarro will help guide Trump on his trade policy toward Beijing.

The Trump administration said it is just cracking down on unfair trade practices but insisted it doesn’t want a trade war with China. Liu’s visit may be their best chance at stopping one.

(CGTN)