China, US to ‘work out details’ to avoid trade war
Washington’s ‘insatiable appetite’ is still a concern
China and the US will work out details of their consensus on avoiding a trade war in the upcoming third round of trade talk, analysts said Friday, while warning that Beijing should watch out for Washington’s “insatiable appetite.”
A US delegation led by Commerce Secretary Wilbur Ross will visit China on June 2-4 to continue consultations with their Chinese counterparts on economic and trade issues, the Xinhua News Agency reported on Friday.
The arrangement was confirmed in a phone conversation on Friday between Chinese Vice Premier Liu He and Ross, Xinhua said.
Based on the consensus reached by the two countries during the last consultation in Washington, Ross’ upcoming visit is expected to work out details of the deal, experts pointed out, warning that the US may continue to push China to make concessions.
“The third round of talks is likely to center on issues like the increase in the amount of US imports, eliminating the ban on exports to China of high-tech products and how China will improve the country’s patent law,” Bai Ming, deputy director of the International Market Research Institute under the Ministry of Commerce, told the Global Times on Friday.
China and the US announced on May 19 that the two countries had reached a consensus to avoid a trade war by mainly allowing the US to export to China more of its products and services.
Though China-US trade tensions seems to have been temporarily relieved, US’ unilateralism has just begun, Zhang Monan, research fellow with China Center for International Economic Exchanges, told the Global Times on Friday.
“The US is initiating wider trade frictions with others in the European Union, Japan and Canada. In the long term, the US aims to clamp down on other countries, not just China,” Zhang said.
“Considering that the full-blown trade war was, as US President Donald Trump said, put ‘on hold’, China should be fully prepared for the insatiable appetite of the US,” she said.
On Tuesday, Trump questioned the agreement his administration reached with China, indicating he is not satisfied with the deal, USA Today reported.
“No, not really… I’m not satisfied, but we have a long way to go,” he said in response to a question about the trade talks.
At the same time, he said that his administration could lift restrictions on Chinese telecom giant ZTE if the company pays a fine of as much as $1.3 billion, according to USA Today.
China’s high-tech sector may be severely shocked in the short term, but the two countries’ frictions in the sector will in turn push forward China’s innovation-driven development and enhance its global competitiveness, Zhang said.
“The Made in China 2025 strategy is significant for China to move toward the higher end of global industry chain from lower end. We will not make any concession to countries attempting to hinder China,” Bai said.
China’s stance on the China-US trade relationship is clear and open, Chinese Foreign Ministry spokesperson Lu Kang said at a daily press briefing on Friday.
We believe that the essence of the China-US trade relationship is about mutual benefits and win-win results, and hope the US leader and his administration – with the aim of maintaining global economic growth and in the interest of consumers and companies, will meet China half-way to resolve disputes and problems, he said.
“China has reacted rationally and calmly to China-US trade tensions. It’s likely that China will fight back if the US asks for more,” Zhang noted.