China rejects report of US$200b trade deficit offer

BEIJING: China cast doubt on reports that it had offered to reduce its annual trade surplus with the United States by US$200 billion (RM796 billion) through increased imports of American products.

The offer was made during talks in Washington this week as Vice-Premier Liu He visited to try to resolve a trade dispute, according to a Trump administration official.

Yesterday, two posts on Chinese state social media disputed the report, and a foreign ministry official said no such offer had been made, to his knowledge.

In a sign that the Chinese government is seeking a conciliatory stance, it announced yesterday that it would end its anti-dumping and anti-subsidy investigation into imports of US sorghum, citing “public interest”.

That move comes days after the restarting of a review of Qualcomm Inc’s application to acquire NXP Semiconductors NV.

“If Trump can cut a deal with China for a US$200 billion reduction in the bilateral trade deficit, then he’ll have won the trade deal of the century,” said Rajiv Biswas, chief Asia-Pacific economist at IHS Markit in Singapore.

A US$200 billion reduction in the US trade gap with China by 2020 was on a list of demands the Trump administration made earlier this month as Treasury Secretary Steven Mnuchin led a delegation here.

That mission left with little common ground with China and reports emerging of infighting among the US officials.

The US merchandise trade deficit with China hit a record US$375 billion last year.

Posts, made on accounts operated by the Xinhua news agency and the People’s Daily, sought to reassure readers that no “unilateral concessions” would be made, and that China would “never negotiate” under conditions set by the US.