China calls new U.S. tariffs unacceptable

? The Chinese government on Saturday criticized a proposal by the U.S. to set new tariffs on some paper goods, saying the move goes against recent trade talks.

“It’s unacceptable and China strongly demands the U.S. to reconsider the decision,” China Commerce Ministry spokesman Wang Xinpei said in a statement on a government Web site.

In what’s seen as a big ramp-up in trade pressure on China, U.S. Commerce Secretary Carlos M. Gutierrez on Friday imposed duties of 10.9 percent and 20.4 percent respectively on two Chinese manufacturers of glossy paper.

The move, which marked a reversal in policy for the first time in more than 20 years, was made to counteract alleged Chinese government subsidies to exporters and could set the stage for textile, steel and other U.S. industrial firms to request similar protection.

China officials said the tariffs threaten the interests of Chinese industry.

The department’s decision is a reversal of a policy of not applying U.S. countervailing duty law to nonmarket-economy countries.