Top Chinese and American officials today finish off their two-day crucial talks in Beijing to avoid a trade war following US President Donald Trump’s demand that China should quickly cut its trade surplus with the United States by USD 100 billion.
A US delegation-led by Treasury Secretary Steven Mnuchin, who is also President Trump’s special envoy, held talks with a Chinese team headed by Vice-Premier Liu He, a close confidant of President Xi Jinping and also a member of the powerful Politburo of the ruling Communist Party of China (CPC).
The US delegation also comprises Commerce Secretary Wilbur Ross, US Trade Representative Robert Lighthizer, assistant to the president for economic policy Larry Kudlow and assistant to the president for trade and manufacturing policy Peter Navarro.
Confirming that the talks between the two sides have started, Chinese Foreign Ministry spokesperson Hua Chunying said China welcomes the US delegation headed by Trump’s special envoy.
The negotiations have begun and still underway, she said. Talks were regarded key to avert a trade war between the two major trade partners as both sides have already announced escalate in tariffs in a tit-for-tat trade spat.
The trade dispute between the top two economies of the world began last month with Trump applying tariffs on steel and aluminium imports into the US.
China retaliated by putting additional tariffs worth about USD three billion on 128 US products. Trump, while demanding China to reduce the USD 375 billion by USD 100 billion, retaliated with USD 50 billion tariffs on Chinese products.
In retaliation, China announced plans to put new tariffs of 25 percent worth USD 50 billion on 106 American products including items like soybeans which could hurt American farmers.
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The two countries have not yet executed their tariff increases to reach a negotiated settlement. Asked about China’s expectations from the talks, Hua said that it is in the best interests of the two countries to resolve their disputes.
“As the world’s top two economies, the US and China should properly resolve relevant disputes through equal-footed consultation and maintain the long-term stability of China-US economic and trade ties,” she said.
In light of the economic volumes of the two countries and the complexity of bilateral ties, it is never very practical to imagine all problems being wiped out through one-time consultation, she said.
“However, as long as the US is sincere about maintaining the long-term stability of China-US economic and trade ties and comes to the negotiating table with mutual respect, equal-footed consultation and win-win results in mind, then we believe that the bilateral consultation would be constructive,” she said.
“When one country changes the terms of the engagement, the other, feeling scorned, usually responds in kind,” Zhang said.
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