China, US discuss road map for talks

China and the US discussed a road map for the next stage of trade talks on Tuesday amid suspicions that the arrest of Huawei executive Meng Wanzhou may jeopardize the consensus reached by the countries’ top leaders.

Observers said that the discussion showed that the trade talks were progressing and should not be derailed by the arrest as they are separate cases.

According to a statement released by China’s Ministry of Commerce on Tuesday, Chinese Vice Premier Liu He, who heads the China-US trade talks, made a scheduled call to US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer in the morning to discuss implementation of the consensus reached by the heads of state of the two countries.

During the call, China and the US exchanged views on a timetable and road map to push forward the trade talks,

according to the statement. But the statement did not give further details of their discussion.

During a dinner meeting in Argentina on December 1, Chinese President Xi Jinping and his US counterpart Donald Trump agreed to halt additional tariffs with the goal of reaching an agreement within 90 days.

The arrest of Meng Wanzhou in Canada on the same day – but not made public until December 5 – has roiled global markets and raised fears that it could further inflame the China-US trade row. Meng appeared in a Vancouver court on Monday but bail has still not yet been granted.

The hearing to determine whether Meng should be released on bail ahead of extradition proceedings will continue Tuesday, CNN reported Tuesday.

Mei Xinyu, a research fellow with the Beijingbased Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Tuesday that “the US may use Meng’s arrest to test and pressure China during trade talks, but China’s tough attitude toward the case has caused the US to flinch.”

Li Haidong, a professor at the Beijing-based China Foreign Affairs University, had a different take on the talks and the arrest.

“It should be clear that the trade talks and Meng’s arrest are two separate cases. The phone call between Chinese and US officials showed that both sides are willing to push forward the consensus reached by the two leaders in Argentina,” Li told the Global Times on Tuesday.

Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics, stressed that Meng’s case is a diplomatic matter, not a trade issue.

“The arrest highlights the fact that fundamental conflicts between the two countries are getting worse but it will not keep the US and China from further negotiations,” Tu told the Global Times on Tuesday.

Chinese State Councilor and Foreign Minister Wang Yi reiterated at a diplomatic seminar held on Tuesday in Beijing that if China and the US cooperate, the two countries and the world will benefit, but if there is confrontation between the two, there will be no winners and this would damage the world.

Exchanges continue

It appears Meng’s arrest has not affected ongoing exchanges between China and the US.

The US Embassy in China posted on its official Sina Weibo account on Monday that David Pekoske, administrator of the US Transportation Security Administration, under the Department of the US Homeland Security, will visit Beijing and meet officials from the Civil Aviation Administration of China.

Mei offered Pekoske with a tongue-in-cheek welcome. “Please enjoy Chinese food and China. The land of ceremony and decorum will not kidnap you.”

Bloomberg reported on Tuesday that China intends to announce this month the purchase of the first batch of US soybeans and most, if not all, will be destined for state reserves.

However, analysts worry that the rising anger and national sentiment of the Chinese public may damage the trade talks and further worsen bilateral relations.

According to a report from Japan-based Nikkei Asian Review on Saturday, US network equipment maker Cisco Systems warned its employees not to travel to China but then withdrew the ban, suggesting anxiety among American companies over possible tit-for-tat retaliation for the arrest of rival Huawei’ finance chief.