Japan and China Locked in Escalating Trade Dispute
VERONICA PEDROSA, CNN ANCHOR: Japan and China are locked in an escalating trade dispute. China is moving to impose duties on certain products from Japan after Tokyo raised tariffs on some Chinese goods. Lisa Rose Weaver reports.</s>LISA ROSE WEAVER, CNN CORRESPONDENT (voice-over): China firmly hit the ball into Japan's court, saying tariffs imposed on Chinese agricultural products in April caused Beijing to act now.</s>ZHANG QIYUE, FOREIGN MINISTRY SPOKESMAN (through translator): China has voiced its opposition several times, and had several consultations with the Japanese side, but the Japanese refuse to correction their decision, and in this situation, the Chinese side had decided to adopt some measures. China had not said when tariffs on Japanese cars, cell phones and air- conditioners would actually begin or how high the tariffs will be. But impact on taxing these items might not directly effect overall export trade to China. Auto exports in fiscal year 2000 accounted for a small portion of overall export trade, and Japanese mobile phone exports are limited, because different technologies are used in China. But Japan is a major investor and trade partner and has issued billion of dollars in development aid and soft loans in the past two decade. A diplomatic fallout could cost more than actual trade losses. The Japanese are advocating conciliation, while China doesn't appear to rule it out either, so long as Japan moves first. Japan's prime minister has said he wants to solve the impasse through negotiation. Lisa Rose Weaver, CNN, Beijing.