Trade war: China says U.S. talks 'laid ground' to resolve dispute

US and China wrap up trade talks in Beijing. What happens next?

US and China wrap up trade talks in Beijing. What happens next?

The talks that started Monday were the first face-to-face meetings since Trump and his Chinese counterpart, Xi Jinping, agreed December 1 to suspend further action against each other's imports for 90 days while they negotiate over USA complaints that Beijing steals or pressures companies to hand over technology. The "negotiations" consisted of USA officials insisting that Beijing meet a long list of demands, but offering nothing in return, other than not proceeding with the higher tariffs.

Delegations from China and the United States ended talks that had lasted longer than expected in Beijing on Wednesday amid signs of progress on issues including purchases of U.S. farm and energy commodities and increased access to China's markets. "The US is very clear about China's stance". He added: "It's been a good one for us".

Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods to pressure Beijing to change its practices on issues ranging from industrial subsidies to hacking.

The so-called "structural issues" are not about "fair trade", but reflect fears in Washington that China is a threat to United States ambitions for global domination.

There has been some indication of Chinese moves to address concerns regarding forced technology transfer, including recently proposed legislation that would bar local governments from forcing foreign firms to transfer technology or illegally restrict market access.

If talks continue to go well, a cabinet-level meeting is likely to happen before the end of the month. "Many of the administration's trade hawks regard them as nebulous, especially when it comes to Chinese trade practices that administration officials consider unfair", it stated.

How China will enforce those measures will be key to any deal.

China also restarted purchases of American soybeans last month, providing relief for a crop hit by Chinese retaliatory tariffs.

Huawei punishes employees for iPhone tweet blunder
However, this did not stop Huawei from working with Galdot on future product releases, like the P20 the following year. Washington is also reportedly encouraging USA allies to stop using the Chinese company's phones and network equipment.

While Beijing has offered to allow U.S. corporations greater access to participation in manufacturing development in China, it is unwilling to abandon its plans to boost its industrial capabilities.

Facing a March deadline, talks aimed at ending a trade war between China and the US are underway, with the world's two biggest economies expressing optimism over the potential for progress but neither indicating its stance has changed.

Still, cooling economic growth in both countries is increasing pressure to reach a settlement. If no deal were reached and U.S. tariffs were raised as threatened on March 2, Chinese growth would be hard hit.

It was possible, she said, that either the truce would be extended or a lower than threatened tariff rate would be implemented on the US$200 billion worth of Chinese goods. The Communist country has been hit with an economic slowdown and its vehicle sales have dropped 19 percent last month from the year before, the steepest decline in China in almost three decades.

The standoff also reflects American anxiety about China's rise as a potential competitor in telecommunications and other technology. China will not make any "unreasonable concessions" and any agreement must involve compromise on both sides, the China Daily, a state newspaper, said on Wednesday.

This week's talks took place between mid-level officials. Donald Trump tweeted Tuesday morning, "Talks with China are going very well!" without offering further details.

The OPEC-led cuts are aimed at reining in an emerging supply overhang, in part because United States crude oil output surged by around two million barrels per day in 2018, to a record 11.7 million bpd.

American officials welcomed a "good few days" as they prepared to depart Beijing today, raising hopes that the world's two largest economies could draw a line under their acrimonious dispute and reach a deal.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.