China Raises Tariffs On US Goods Amid Tensions

China on Saturday increased tariffs on billions worth of US goods as it prepares to unveil a blacklist of "unreliable" foreign companies that analysts say aims to punish US and foreign firms cutting off supplies to telecoms giant Huawei.

Beijing's move hits US$60 billion worth of US goods with new punitive tariffs ranging from five to 25 percent, and comes in retaliation for Washington raising punitive tariffs on US$200 billion in Chinese goods to 25 percent.

Washington and Beijing resumed their trade battle last month when trade talks in the US ended without a deal, with American negotiators accusing Chinese negotiators of reneging on previous commitments.

The countries have exchanged tariffs on US$360 billion in two-way trade so far.

The tit-for-tat tariff war has been upstaged in recent weeks by Washington's move to blacklist Chinese tech giant Huawei over national security concerns, threatening the firm's global ambitions.

Hitting back, China's commerce ministry said on Friday it would release its own list of "unreliable entities" that break their commercial contracts and stop supplying Chinese firms.

China's commerce ministry said it would roll out the detailed measures against companies on the list shortly, noting foreign firms that break contracts, cut off supplies or take other discriminatory measures against Chinese firms would be included.

China's state-owned tabloid the Global Times said the new list would "work as deterrent forming a protective barrier around Chinese companies".

"China is ready to wage a protracted economic and trade war with the United States," the nationalist paper said in an editorial. (AFP)