Trade-war truce hope

Ross Beijing talks

The Trump administration aimed for a possible trade truce with China on Saturday while at the same time threatening consequences if Beijing’s “militarization” of the South China Sea continues.

Commerce Secretary Wilbur Ross arrived in Beijing seeking to persuade the Chinese to step up purchases of US goods and energy as a way to close its $375 billion trade gap with the United States.

His visit comes after the administration ramped up tariff threats again. Trump officials are considering levies on $50 billion worth of Chinese imports, as well as new restrictions on Chinese investment in the US and tighter export controls. China has countered with threats of tariffs of its own.

More than 50 US officials are in Beijing for the trade talks. Ross, who did not speak to reporters after landing, hopes his visit will keep dialogue between the countries going, according to Reuters.

Meanwhile, Secretary of Defense James Mattis raised the prospect of additional American steps against China if Beijing continues to intimidate nearby countries by putting weapons systems on man-made islands in the South China Sea.

Mattis said the administration disinvited China from an upcoming naval exercise as an “initial response” to Beijing’s aggressive activities.

“I believe there are much larger consequences in the future,” he said in a speech at an international security conference on Saturday in Singapore.

Asked to elaborate, Mattis said China’s reliance on military muscle to achieve its goals “is not a way to make long-term collaboration the rule of the road in a region that’s important to China’s future.

“There are consequences that will continue to come home to roost, so to speak, with China, if they don’t find a way to work more collaboratively with all of the nations who have interests,” he added.