China warns of retaliation if US harms trade ties

China's government says it will take action to defend its interests after US President Donald Trump authorised an inquiry into whether Beijing is improperly obtaining foreign technology.

China's commerce ministry on Tuesday voiced "serious concern" about Trump's order and warned any US trade protectionism "will definitely harm bilateral trade relations".

Trump told American trade officials on Monday to look into whether Beijing improperly requires foreign companies to hand over technology in exchange for access to Chinese markets.

He has frequently accused China of undermining the US economy.

China's policy of forcing foreign companies to turn over technology to Chinese joint venture partners and failure to crack down on intellectual property theft have been longstanding problems for several US administrations.

Trump administration officials have estimated that theft of intellectual property by China could be worth as much as $600bn.

Trade groups for technology companies welcomed the US move, but China's commerce ministry criticised it as "strong unilateralism" that violates the spirit of international trade agreements.

"If the US side takes actions that impair the mutual trade relations, disregarding the facts and disrespecting multilateral trade rules, China will not sit idle," the ministry said in a statement.

China will adopt “all appropriate measures to vigorously defend" its rights and interests, it said.

The United States is China's second-largest trading partner after the European Union.

SOURCE: ALJAZEERA