US trade mission seeks structural changes to China’s economy
BEIJING/ WHISTLER: The US wants trade talks in Beijing to result in structural changes to China’s economy, in addition to increased Chinese purchases of American goods, US Treasury Secretary Steven Mnuchin said.
US Commerce Secretary Wilbur Ross arrived in Beijing on Saturday with an interagency team of US officials for talks on long-term purchases of US farm and energy commodities, just days after Washington renewed its threats to impose tariffs on Chinese goods.
The purchases are partly aimed at shrinking the US$ 375 billion US goods trade deficit with China.
Mnuchin, speaking at a G7 finance leaders meeting in Canada where he was the target of US allies’ anger over steel and aluminium tariffs, said the China talks would cover other issues, including the Trump administration’s desire to eliminate Chinese joint venture requirements and other policies that effectively force technology transfers.
“I want to be clear, this isn’t just about buying more ( US) goods, this is about structural changes,” Mnuchin said. “But I also fundamentally believe that if there are structural changes that allow our companies to compete fairly, by definition, that will deal with the trade deficit alone.”
Ross, who was preceded by more than 50 US officials in Beijing, met Chinese Vice Premier Liu He for dinner on Saturday night and the two were due to meet again on Sunday, a US official said. Ross declined to speak to reporters
I want to be clear, this isn’t just about buying more (US) goods, this is about structural changes. Steven Mnuchin, US Treasury Secretary
when he arrived at his hotel in Beijing.
The US and China have threatened tit- for- tat tariffs on goods worth up to US$ 150 billion each.
After it had appeared a trade truce between the two economic heavyweights was on the cards, the White House this week warned it would continue to pursue tariffs on US$ 50 billion worth of Chinese imports, as well as impose restrictions on Chinese investments in the US and tighter export controls.
The US team also wants to secure greater intellectual property protection and an end to Chinese subsidies that have contributed to overproduction of steel and aluminium.
“I think we have very broad objectives that are across a rebalancing of the trade relationship and the trade deficits,” Mnuchin said. “There’s an acknowledgement on both sides to deal with this issue.”
G7 countries generally share the US frustration with Chinese trade and economic practices, but their anger was directed at Mnuchin over new US tariffs of 25 per cent on steel and 10 per cent on aluminium. — Reuters