US, China ease trade war fears
Washington’s ‘leverage’ tariffs may be sticking point in next round
BEIJING— US and Chinese negotiators wrapped up “constructive” trade talks on Friday, US Treasury Secretary Steven Mnuchin said. But the White House insisted on maintaining its 25-percent tariffs on about $50 billion worth of Chinese goods which could be a sticking point for the next round of negotiations next week. Beijing has rushed a law that promises to protect foreign firms from forced technology transfers.—
BEIJING— US and Chinese negotiators wrapped up “constructive” trade talks in Beijing on Friday ahead of another round next week, US Treasury Secretary Steven Mnuchin said.
Mnuchin and US Trade Representative Robert Lighthizer held negotiations with Chinese Vice Premier Liu He at the Diaoyutai State Guesthouse after a working dinner Thursday.
Mnuchin wrote on Twitter that he and Lighthizer “concluded constructive trade talks in Beijing” but he did not provide more details.
“I look forward to welcoming China’s Vice Premier Liu He to continue these important discussions in Washington next week,” he said.
The two negotiating teams, including China’s central bank chief Yi Gang, posed for pictures in front of Chinese and American flags, but they did not make statements to the media.
In Washington, White House economic adviser Larry Kudlow said Thursday the talks were not “time-dependent” and could last weeks or even months if necessary.
The Chinese commerce ministry said a “large amount of work” remains to be done and both sides confirmed before this round of talks that another faceto-face negotiation was scheduled for Washington next week.
Tariffs as ‘leverage’
The two sides have imposed tariffs on $360 billion in two-way trade since last year but Trump and Chinese leader Xi Jinping agreed to a truce in December.
Trump suggested last week that some of those tariffs should stay in place after a deal is reached to ensure China keeps its end of any bargain.
“We have to see what the track record is and we’re not going to give up our leverage,” said Kudlow.
US insistence on keeping the first tranche of 25 percent tariffs on $50 billion worth of Chinese imports could be a sticking point for a deal, analysts say.
Beijing has taken steps to address some US complaints, rushing through a law this month that promises to protect foreign firms from the forced transfer of technology.
It also includes language on protecting foreign companies’ commercial secrets, and fleshes out criminal penalties for officials who leak confidential information.