Beijing, Nov 21: Raising the stakes in an increasingly bitter trade spat, China has threatened to hike import duties on some US products following a World Trade Organization ruling that Washington's tariffs on steel are illegal. Beijing also said yesterday that it was delaying the departure of an official trade delegation bound for the United States - a trip that was to follow up last week's 6 billion US dollars buying spree by a similar delegation.

And, it summoned US ambassador Clark Randt for the second time in two days so it could express its "deep regret and firm opposition" to new US import quotas on Chinese textiles, the government said through its Xinhua news agency.

Vice Commerce Minister Ma Xiuhong called on the United States to lift its steel tariffs, imposed in March 2002 to protect US steel manufacturers but declared unlawful by the WTO this month. "If the United States did not observe the WTO ruling, China would raise the tariffs of some US products and plans to do so were under discussion," Xinhua reported, citing Ma.

The agency's web site, Xinhuanet, reported the same thing with slightly stronger language, saying China "is going to raise tariffs on some US imports, and plans are being studied."

Neither report said which American imports would be affected. Foreign ministry spokesman Liu Jianchao didn't elaborate on why China delayed a US-bound trade delegation other than to say that it was for technical reasons.

Bureau Report