China happy with US offer on trade talks

China has welcomed a US offer to hold fresh trade talks, saying they are discussing the details.

This gives some hope the world’s top two economies could step back from the brink of an all-out trade war.

They have been engaged in an escalating trade fight for months, but on Wednesday it emerged that US Treasury Secretary Steven Mnuchin had invited top Chinese officials to discuss the issue.

“The Chinese side believes the escalation of the trade conflict is not in the interest of either party,” commerce ministry spokesperson Gao Feng said at a regular news briefing.

Beijing “has indeed received an invitation from the US and holds a welcoming attitude to it”, Gao said, noting: “Two sides are still communicating on the specific details.”

News of the possible highlevel talks comes as a new business survey released on Thursday showed that the majority of US firms in China are beginning to feel the pinch of the titfor-tat trade battle.

The fight had looked as if it would spiral further after US President Donald Trump threatened last week to impose tariffs on all $500bn (R7.4 trillion) worth of imports from China.

Hopes for the resumption of negotiations sent Asian markets rallying, with Hong Kong surging 2.5% – having fallen for six straight days and into a bear market – and Shanghai more

‘The Chinese side believes escalation of the conflict is not in the interest of either party Gao Feng

COMMERCE MINISTRY SPOKESPERSON

than 1% higher. But analysts cautioned the two sides might still be far from coming to an agreement.

The Trump administration may not be fully aligned on the matter, with the US Trade Representative still seeming to want to apply pressure, while Beijing may not be ready to budge on its positions, economist Andrew Polk wrote in the Trivium China newsletter.

“We don’t think China has much more to offer than they already have, and the US doesn’t seem inclined to accept what is currently on the table,” Polk said.

“We may be in for another round of disappointment.”

Top White House economic adviser Larry Kudlow told Fox Business Network on Wednesday: “Secretary Mnuchin, who is the team leader with China, has apparently issued an invitation.”

“Talking is better than not talking, so I regard this as a plus,” he said.

Sixty per cent of American companies in China say they are hurting from the escalating trade spat. –