China wants rollback of US tariffs on $360bn imports
Washington, US - China is seeking the rollback of US tariffs on as much as US$360bn of Chinese imports before President Xi Jinping agrees to go to the US to sign a partial trade deal with President Donald Trump, according to people familiar with the matter.
Negotiators asked the Trump administration to eliminate tariffs on about US$110bn in goods that were imposed in September and lower the 25 per cent tariff rate on about US$250bn that began last year, said some of the people, who asked not be named discussing the private talks.
Chinese officials also suggested the US could temporarily waive some tariffs, people familiar with Beijing’s position said. In return, China could remove tariffs on a reciprocal amount of US goods, mostly farm products, one of the people said.
China has also previously demanded that Trump cancel plans to impose duties on roughly US$160bn in imports, scheduled for December 15, which would hit consumer favourites like smartphones and laptops. At the very least, those tariffs have to be taken off the table for Xi to get on a plane to meet Trump, the people said.
The Financial Times reported earlier that US officials are debating whether to remove levies imposed in September including clothing, appliances, and flatscreen monitors, citing people briefed on the discussions. The Ministry of Commerce in Beijing didn’t immediately respond to a fax seeking comment on China’s position.
US Trade Representative Robert Lighthizer and other officials have consistently argued that the duties on the US$250bn of goods are a way of making sure that China lives up to its commitments and should be in place for the long-term.
The two presidents are working towards a face-to-face meeting to ink the first phase of a trade deal, which would include Chinese pledges on increasing purchases of US agriculture products, keeping its currency stable and protecting intellectual property.
China is reviewing locations in the US where Xi would be willing to meet with Trump, Bloomberg News reported on Monday. Chinese officials had initially hoped the signing would be linked to a formal state visit but they’re open to having Xi come to the US without one, the people said, adding that no final decision had been made.
The decision is now between Alaska and Iowa for the signing location, people briefed on US plans said.
Commerce Secretary Wilbur Ross said in a telephone press conference from Bangkok on Tuesday that achieving a phase one deal will help rebuild trust between the two sides, and that he hoped it would be the precursor of further discussions.
Reviving liquefied natural gas (LNG) exports to China could form part of an interim trade agreement with Beijing, according to comments by Ross.
LNG and soybeans are among the goods being discussed in phase one negotiations dealing with current trade issues, Ross said from Bangkok.