In ‘great position’ to start phase 2 of trade negotiations: Trump

CHINESE STATE MEDIA WARNED AGAINST ANY “NITPICKING” AS BEIJING PORTRAYED THE PHASE ONE DEAL AS A BOON FOR CHINA’S ECONOMY

WASHINGTON/BEIJING:US President Donald Trump on Thursday pointed to phase two trade talks with China, a day after Washington and Beijing inked a preliminary phase one agreement, but gave no other details about the next phase of negotiations.

“We are now in a great position for a Phase Two start,” Trump tweeted.

US vice-president Mike Pence too said discussions had begun on the phase two deal, hours after the initial pact that defused some tensions but left some major issues unresolved.

“We’ve already begun discussions on a phase two deal,” Pence said in an interview with Fox Business Network on Wednesday. He gave no further details.

Earlier that day, Washington and Beijing scaled back their 18-month trade row that has hit global growth by signing the pact under which China will boost purchases of US goods and services. The European Union said it will check to see whether the deal complied with global trade rules, the EU’S trade chief said on Thursday.

“The devil is in the detail,” EU trade commissioner Phil Hogan told a conference in London, speaking by video link from Washington where he is meeting US officials this week. He added the details were “a bit sketchy”.

“They have stepped outside the usual framework for doing deals ... and they are dealing directly on a bilateral basis and we will have to assess whether it is WTO compliant.”

On Thursday, the Chinese state media warned against any “nitpicking” as Beijing portrayed the phase one deal and its new commitments to massive purchases of American goods as a boon for China’s economy.

In return for some tariff relief, China agreed to buy at least $200 billion in additional US goods and services over two years, including $32 billion more in imports of US farm products— targets some analysts say may be tough to meet.

Official media and government statements were upbeat with the People’s Daily saying that boosting agricultural imports will “enrich the common people’s dining tables”.

Foreign ministry spokesman Geng Shuang said the phase one agreement was good for both countries and the world.

An editorial in the Global Times stated: “We urge individuals and forces to exercise some restraint in their nitpicking of the agreement and bad-mouthing future trade” talks, it said.