Frank Sino-US talks can avert possible trade war

As each other’s largest trading partner, China and the United States both set great store by their trade ties. Yet with the surplus in China’s favor proving an itch that US President Donald Trump can’t stop scratching in his bid to achieve what he calls “fair and reciprocal” trade relationships, in real speak meaning they conform to his “America first” mantra for the voters, trade tensions between the world’s two largest economies have been on the rise.

Having already imposed punitive tariffs on solar panels from China and threatening to levy a big fine for what the US alleges is intellectual property theft, Trump is also reportedly mulling punitive tariffs on steel and aluminum imports from China.

Given the increasing protectionist measures Washington has been taking since Trump took office, there has not surprisingly been talk of tit-for-tat actions leading to a possible trade war. To avoid that worst-case scenario, the two sides should take the opportunity of this week’s visit to Washington by China’s top economic adviser to focus on common ground and find reasonable solutions to their trade differences.

The talks between Liu He, who is also a member of the Political Bureau of the Communist Party of China Central Committee, and Trump’s trade envoy Robert Lighthizer will likely serve as harbinger of how Sino-US trade relations are going to evolve in the near future.

Liu’s visit, which begins on Tuesday, highlights once again that Beijing is seeking to work with Washington to tackle the trade differences between them head-on, and there is certainly much room for the two sides to cooperate to achieve more balanced trade if they demonstrate the necessary shared willingness. After all, China is the major buyer of US farm products such as wheat and soybeans, and Boeing planes, and during Trump’s visit to Beijing in November, he sealed deals worth $250 billion with China.

Since then, his administration has defined the bilateral relationship as one of rivalry and competition. However, the opportunities for cooperation and the benefits that can be accrued from them should not be ignored or missed.

Frank and sincere talks with a willingness to agree on quid pro quo actions to achieve a mutually satisfactory solution are the best, if not only way, to avoid escalating retaliatory measures that would lead to a trade war that would be damaging for both.