New trade talks may not lead to quick accord

Chinese experts on Thursday hailed the resumption of talks between China and the US as a sign that could be resolved trade frictions, but doubted an agreement will be reached soon.

At the invitation of the US side, a Chinese delegation led by Vice Minister of Commerce Wang Shouwen will visit the US in late August to meet with their US counterparts on bilateral economic and trade issues of mutual concern, the Ministry of Commerce (MOFCOM) said Thursday.

Wang is also China’s deputy international trade representative. The US delegation will be led by David Malpass, undersecretary for international affairs at the US Treasury Department, the Xinhua News Agency reported on Thursday.

China has reaffirmed its opposition to unilateralism and trade protectionism, and will not accept any form of restrictive unilateral trade measures,

according to a statement MOFCOM released on its website on Thursday.

China welcomes dialogue and communication on the basis of reciprocity, equality and integrity, the statement said.

“The new round of talks is necessary for both China and the US to keep in touch and avoid a complete breakdown in bilateral ties,” Mei Xinyu, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Thursday.

Diao Daming, an American studies expert and associate professor at Renmin University of China, also said the talks are a positive sign amid escalating China-US trade tensions. They will play a crucial role in the final resolution of the trade frictions.

“We should make full preparations and actively promote the talks,” Diao told the Global Times on Thursday.

Cong Yi, an economics professor at Tianjin University of Finance and Economics, said the talks may focus on the level of openness and trade share.

However, analysts remain doubtful over the talks will produce a positive outcome.

“There is a slight chance that China and the US will reach an agreement,” Mei said.

The US has not been seriously affected by the frictions, and has not realized how unreasonable their claims are. Therefore, there is no reason for the US to compromise and reach an agreement this time, Mei said.

But the talks will pave the way for further negotiations when both countries are willing to reach an agreement, Mei noted.

Diao said that stubborn interests drove the US to launch a trade war and one round of talks is not enough to solve the problem. He urged the US to cherish this chance as there are no winners in the trade war.

Cong predicted the outcome of the upcoming talks will not be optimistic, as the Trump administration has been unsteady.

“For example, Trump’s recent attitude toward the Taiwan question crossed China’s bottom line. So, the Chinese delegation should always hold their bottom line during the talks,” Diao said.

On August 8, the US delivered on its threat to impose a 25 percent tariff on $16 billion in Chinese goods. MOFCOM announced the next day the US forced China to retaliate with the same tariff rate on the same value of goods from the US. Both sets of tariffs take effect on August 23.

“Aside from talks on trade frictions, this new round of talks may also be a chance for China to express its determination to deepen reforms,” Wang Yiwei, director of Renmin University of China’s Institute of International Affairs, told the Global Times.

Since opposition in the US to a trade war has emerged, especially among companies which invest heavily in China, the new round of talks is Trump’s chance to ease the domestic situation, Wang Yiwei said on Thursday.