TRADE WAR: US, CHINA SET TO RESUME TALKS TO RESOLVE SPAT

GENEVA: Despite the worsening trade war and continued retaliatory measures, the US and China are resuming talks later this month. But chances of a breakthrough remain bleak for the time being, according to analysts.

At the invitation of a senior US treasury department official for international affairs David Malpass, China is sending its tenacious negotiator and vice-minister of commerce Wang Shouwen for talks. Significantly, the US treasury department has taken the initiative to kick-start the talks even though it is not the nodal point for resolving trade frictions with other countries. The office of the US trade representative (USTR) led by Robert Lighthizer holds the dominant position for resolving and addressing bilateral and multilateral trade issues.

During the previous rounds of trade talks between the US and China, the US treasury secretary Steven Mnuchin has emerged as a pacifist for finding a compromise unlike his colleague the Lighthizer, a long-time China hawk, according to analysts.

After the talks between China and the US in May, the US treasury secretary remained hopeful of breaking the ice on the trade front with China. But the USTR poured cold water on Mnuchin’s hopes by warning that the US wanted substantial change in China, according to the Financial Times of May 21.

“Getting China to open its market to more US exports is significant, but the far more important issues revolve around forced technology transfers, cyber theft and protection of our innovation,” Lighthizer reportedly said.