U.S., China said to seek restart of talks to defuse trade war
Representatives of U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are having private conversations as they look for ways to reengage in negotiations, according to the people who spoke about the deliberations on condition of anonymity.
They cautioned that a specific timetable, the issues to be discussed and the format for talks aren’t finalized, but added there was agreement among the principals that more discussions need to take place.
Negotiations to resolve the dispute have been stalled for weeks, with both sides refusing to budge. High-level U.S. talks on the Trump administration’s trade posture toward China are taking place this week, according to a third person who also spoke on the condition of anonymity.
U.S. stocks rose, Treasury yields edged higher, the offshore yuan erased an earlier drop and the dollar pared gains.
The next wave of U.S. tariffs is set to kick in as soon as Wednesday, with the possible imposition of duties on another $16 billion of Chinese imports. The implementation could be delayed for weeks as the administration works out the details of which products it will target. Officials in Beijing have vowed to respond with the same amount of tariffs on U.S. products.
One person familiar with the internal deliberations said the U.S. is trying to secure certain concessions and if China agrees, it is possible the U.S. would back off additional tariffs.
Complicating Mnuchin’s efforts is a harder line taken by U.S. Trade Representative Robert Lighthizer, who has jurisdiction over the U.S.’s 301 investigation that sparked the tariffs. That case concluded China was stealing American technology and tariffs were needed to offset the damage.
A U.S. Treasury spokesman didn’t respond to a request for comment.
‘Chronic Problem’
U.S. and Chinese officials have given little recent indication in public that a restart to negotiations might be in the offing. Lighthizer said last week that trade tensions with China are a “chronic problem,” while China’s representative at the World Trade Organization accused the U.S. of “extortion.”
Negotiations broke off after the Trump administration imposed tariffs on $34 billion in Chinese imports this month, a move the Chinese said would void any promises they’d made in negotiations. Beijing responded in kind with its own tariffs.
Trump’s mission to reduce the U.S. trade deficit via the threat of tariffs has brought him into conflict with China as well as U.S. allies, roiling financial markets and raising fears of a global trade war the International Monetary Fund has warned may undermine the strongest economic upswing in years.
ZTE Deal
Chinese and U.S. officials have struggled to find a starting place for a new round of talks. After taking a hard line on Chinese telecom equipment maker ZTE Corp., the Trump administration this month finished a deal that allowed the company to stay in business. Trump said the pact was a personal favor to Chinese President Xi Jinping. – Neal Bhai Reports
POST UPDATED 31 JULY, 2018 09:32 PM