China’s pushback worries delegates
US team headed to talks in hopes of ironing out ongoing concerns
Some U.S. negotiators are concerned that China is pushing back against American demands in trade talks, according to people familiar with the negotiations, even as President Donald Trump sounded optimistic about reaching a deal that could boost his re-election chances.
Chinese officials have shifted their stance because after agreeing to changes to their intellectual-property policies, they haven’t received assurances from the Trump administration that tariffs imposed on their exports would be lifted, two of the people said on condition of anonymity.
Beijing has also stepped back from its initial promises over data protection of pharmaceuticals, didn’t offer details on plans to improve patent linkages, and refused to give ground on data-service issues, one person familiar with the U.S.’s views said. Beijing is trying to bring in wording that would ensure rules in the trade agreement have to comply with Chinese laws, the person added.
“Talks with China are going very well,” Trump said in response to a shouted question at the White House where he held a joint press conference on Tuesday with Brazilian President Jair Bolsonaro.
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to Beijing next week for high-level talks to try to hammer out a deal, according to a senior administration official, who asked not to be identified. The
men agreed to the plans in a phone call on Tuesday with Chinese Vice Premier Liu He, who would then make a return visit to Washington at a date yet to be confirmed. The Wall Street Journal earlier on Tuesday reported details about the trip.
Talks are going well and are expected to wrap up in the coming weeks, the official said.
In recent days, USTR has sent comments to its Chinese counterparts seeking to address concerns with language in China’s revised offer on intellectual-property protection, according to one person briefed on the discussions.
While some American officials see China’s strategy as backpedaling on commitments, others were less concerned saying it was a normal part of the negotiation process.
A person close to Lighthizer denied that Chinese officials have backed away from previous pledges. A Chinese official briefed on the talks said that the negotiations are still ongoing and that a back-and-forth is to be expected in such circumstances.
Trump is pushing for U.S. negotiators to close a trade deal with China soon, concerned that he needs a big win on the international stage to boost his reelection chances. Trump has repeatedly said that talks with China are “moving along nicely,” and said earlier this month that markets will experience “a very big spike” as soon as the trade deal is complete.
In recent weeks, possible dates for a signing of an accord between Trump and his Chinese counterpart Xi Jinping have been pushed back amid what Lighthizer has called “major” outstanding issues. The U.S. has said a trade deal with China must address its alleged theft of trade secrets and IP from American companies, regardless of any pledge from Beijing to buy more U.S. goods and services.
In video conferences over the past few weeks, the two countries have advanced a series of documents that would eventually become the trade agreement.
On IP, U.S. and Chinese officials had come up with an almost 30-page text, Lighthizer told lawmakers this month.
The Ministry of Commerce and the State Council Information Office in Beijing didn’t immediately respond to request for comment on the negotiations. White House communications aides didn’t immediately respond to a question for comment.
A deal between the U.S. and China could see them reverse tariffs on roughly $360 billion of goods they’ve imposed on each other’s imports since July.
Trump has twice delayed imposing additional tariffs on Chinese goods, that were scheduled to begin Jan. 1 and then March 1, citing progress in the trade talks.
In recent weeks, investors had been heartened by signs that Trump is looking to sign a deal with Xi, possibly at a summit at Trump’s Mar-a-Lago resort in Florida.
The U.S. is pushing for enforceable targets after Trump and his trade team have criticized China for failing to live up to past promises.
U.S. and European business groups voiced skepticism about the effectiveness of a new law on foreign investment that China’s parliament rubber-stamped last week.