US-China To Restart Trade Talks, But China Claims Its Demand Must Be Met

With reference to the revamped trade negotiations between the United States and China – being seen as advance talks prior to a meeting between Presidents Donald Trump and Xi Jinping next week in Japan, Chinese officials said that they hoped that a problem-solving attitude to the talks would be offered by the US negotiators.

The talks on trade between the two largest economies of the world came to a standstill last month after China was accused by the US of going back on pledges that were made by it in earlier rounds of talks.

But hopes of a break in the deadlock were rekindled after a telephone call between Trump and Xi on Tuesday and after the confirmation the two leaders would be meeting at the sidelines of the G20 summit in Japan.

“The heads of the two trade teams will communicate, according to instructions passed down from the two presidents,” Chinese commerce ministry spokesman Gao Feng told reporters. “We hope (the United States) will create the necessary conditions and atmosphere for solving problems through dialogue as equals.”

He would speak by telephone to Liu He, China’s vice premier and chief negotiator in the trade talks, “in the next day and a half”, said U.S. Trade Representative Robert Lighthizer.

The trade war between the two countries have been going on for more than year with both imposing import tariffs on each others’ goods worth billions of dollars. The trade war between the two countries has roiled the international financial markets and dented growth of global trade.

Last month Trump said that he could also increase tariffs on another $300 billion worth of Chinese which would include virtually everything – from consumer products such as cellphones, computers and clothing and would be the remaining of the Chinese imports into the US to be imposed tariffs of up to 25 per cent.

The trade negotiations are being stalled because of three major sticking points according to China. These include the US and the China removing the tariffs on each other during the trade war, the quantity of US products that Chinese companies would purchase from so that the trade deficit between the two countries is reduced and the demand of China to create a “balanced” wording of the trade agreement. China has said that it would not compromise on those “matters of principle”.

However over the issues such as structural economic reform, implementation, protection of intellectual property (IP) rights and market opening could still be settled between the two countries, said Gao expressing optimism.

“Both sides have immense mutual interests. I believe by taking care of each other’s concerns through equal dialogue, both sides will for sure be able to find a solution to solve the problems properly,” Gao said.

“China will maintain our long-standing commitment to reform and opening in order to continue to expand and open. We welcome more and more foreign investment to come to China,” Premier Li Keqiang said, in comments in front of reporters.

(Adapted from Reuters.com)

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Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Sustainability, Uncategorized

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