China seeks rollback of US tariffs on $360 bn of imports
BEIJING/WASHINGTON: China is seeking the rollback of US tariffs on as much as $360 billion of Chinese imports before President Xi Jinping agrees to go to the US to sign a partial trade deal with President Donald Trump, according to people familiar with the matter.
Negotiators asked the Trump administration to eliminate tariffs on about $110 billion in goods that were imposed in September and lower the 25% tariff rate on about $250 billion that began last year, said some of the people, who asked not be named discussing the private talks.
Chinese officials also suggested the US could temporarily waive some tariffs, people familiar with Beijing’s position said. In return, China could remove tariffs on a reciprocal amount of US goods, mostly farm products, one of the people said.
China has also previously demanded that Trump cancel pl a ns t o i mpose duti e s o n roughly $160 billion in imports, scheduled for December 15, which would hit consumer favourites like smartphones and laptops. At the very least, those tariffs have to be taken off the table for Xi to get on a plane to meet Trump, the people said.
The F i n a n c i a l T i me s reported earlier that US officials are debating whether to remove levies imposed in September including clothing, appliances, and flat-screen monitors, citing people briefed on the discussions. The ministry of commerce in Beijing didn’t immediately respond to a fax seeking comment on China’s position.
US trade representative Robert Lighthizer and other officials have consistently argued that the duties on the $250 billion of goods are a way of making sure that China lives up to its commitments and should be in place for the long-term.
On Tuesday, Xi reiterated China’s commitment to economic openness and the global trading order at a speech in Shanghai, striking a somewhat softer tone than his address to the same conference a year ago, where he took some veiled swipes at Trump’s “America First” polices. The two presidents are working toward a faceto-face meeting to ink the first phase of a trade deal, which would include Chinese pledges on increasing purchases of US agriculture products, keeping its currency stable and protecting intellectual property.
TRADE DEAL
Meanwhile, Trump has invited his Chinese counterpart to sign the phase one of a bilateral trade deal when it is agreed upon, according to a top White House official.
US national security advisor Robert O’brien, who is one of the most senior members of the Washington delegation in Bangkok for the Association of Southeast Asian Nations (ASEAN) meeting, said that the US wants “great relations” with China.