China’s economy czar heads to Washington for crunch trade talks

China’s Liu He is heading to Washington for talks over Beijing’s technology ambitions and the threat of US tariffs.

The announcement follows talks last week in Beijing that US Trade Representative Robert Lighthizer said “made headway” on key issues. Vice Premier He will hold talks with Lighthizer and Treasury Secretary Steven Mnuchin.

Both governments have expressed optimism but gave no details. Economists say Beijing’s goal is to persuade President Donald Trump they are making enough progress to postpone US penalties.

Beijing hopes for “a mutually beneficial agreement,” said a foreign ministry spokesman.

Without an agreement in place, though, a 10 percent tariff increase imposed in July on $200 billion of Chinese goods is due to rise to 25 percent on March 2.

Trump imposed the penalties over complaints Beijing steals from, or pressures foreign companies to hand over, technology.

Beijing retaliated with higher duties on US goods, telling importers to find other suppliers. That led to a 40 percent drop in Chinese imports of American goods in January.

Washington, Europe and Japan have complained plans such as “Made in China 2025,” violate Beijing’s market obligations.

China’s leaders have offered to narrow its multibilliondollar trade surplus with the US by purchasing more natural gas, soybeans and other exports, but are resisting pressure to abandon plans they see as a path to greater prosperity.

Trump said last week he might push back the March 2 date if talks go well, but the White House is yet to confirm whether sufficient progress has been made.