Washington: US President Donald Trump said he would soon meet his Chinese counterpart Xi Jinping to try to secure a “great” trade deal between the world’s two largest economies as crucial talks to resolve the tariff war that rattled the global economy ended without any deal.
The US and China have been locked in an escalating trade spat since early 2018, raising import tariffs on each other’s goods. Last year, Trump imposed tariff hikes of up to 25 per cent on USD 250 billion of Chinese goods.
The move prompted China to increase tariffs on USD 110 billion of American goods. During a meeting in Argentina on the sidelines of the G-20 Summit, Trump and Xi agreed to halt any further tariff increases for 90 days beginning January 1.
During the two-day talks which ended on Thursday, US Trade Representative Robert Lighthizer led the US delegation while Vice Premier Liu He headed the Chinese side. The White House said in a statement that the two sides had made progress but that “much work remains to be done.”
The administration said it would keep a “hard deadline” of March 2, at which point it would escalate import taxes on USD 200 billion in Chinese good if there was no deal.
Asked in the Oval Office, where he was meeting with Liu, whether a deal was possible, Trump said he was not sure.
“We have to get this put on paper at some point if we agree,” the President said. But Trump said he was optimistic the world’s two largest economies could reach “the biggest deal ever made”.
“There are some points that we don’t agree to yet, but I think we will agree. I think, when President Xi and myself meet, every point will be agreed to,” said Trump. “We’re going to have a great trade deal with China if it all works out…it’s going to be great for both countries — not just us, not just them,” he added.
Trump has made resetting the US relationship with China a centerpiece of his presidency, pulling out of a planned multilateral trade deal drawn up by the Obama administration and launching a trade war last year that has contributed to an economic slowdown in China — and jitters in the US.
“Both sides have also set-out a timeline and road map for the next step of talks,” state-run news agency Xinhua reported. China agreed to increase imports of US goods and boost cooperation on protecting intellectual property, it said.
China is facing the daunting task of presenting a credible plan to meet Trump’s demands to cut down the USD 375 billion trade deficit.
The Trump administration also complains that Beijing unfairly subsidizes its own tech companies. China has denied that it deploys any such tactics.
During talks between the two sides, the Chinese delegation read out a letter from Xi in which he said China-US relations were at a “critical” stage. “I hope that our two sides will continue to have mutual respect,” Xi said. Both counties should meet “each other halfway in order to reach an early agreement that works in the best interest of both sides ….such an agreement will send a positive message to our two people and the broader international community,” the letter from Xi said.
Among other things the American and Chinese delegation discussed are the role of currencies in the US–China trading relationship.
They also discussed the need to reduce the enormous and growing trade deficit that the United States has with China. The US-China trade hostilities have weakened both economies, shaken financial markets and clouded the outlook for global trade. (PTI)
