Published: Fri, November 16, 2018
Global News | By Stacy Ballard

China offer unlikely to spur major trade breakthrough - senior U.S. official

China offer unlikely to spur major trade breakthrough - senior U.S. official

United States stocks erased early losses on Thursday, after more reporting that the Trump administration is seriously engaging China on trade issues.

The Asian nation has turned to South America to replace USA supply, sparking concern that the trade spat could have lasting effects.

One way Beijing could do that is by offering to reach a bilateral free trade deal with Washington that includes all of the concerns Trump has addressed: be it currency manipulation, intellectual property rights, concerns about state-owned enterprises.

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The US-China trade war, after upsetting the demand and supply forces and wasting billions on taxes, is finally headed towards a dialogue.

U.S. -China Business Council President Craig Allen told Reuters last week that he thought it was likely China would withdraw from any process set at the G20 if the Trump administration went forward with raising the tariff rate. The biggest of, which is levied on Chinese imports worth $200 billion, due to increase to 25 percent in January, in case no agreement is signed before that time. 24 September the United States imposed 10% tariffs on imported Chinese goods at $200 billion, and in turn China has imposed duties on American imports by $60 billion. "We're convinced China knows where we stand", Pence said. The tensions further heightened in late May when Washington announced that $50 billion worth of Chinese goods would be subject to 25 percent tariffs prompting a harsh retaliation from Beijing.

In this context, Pence singled out "rampant intellectual property theft, forced technology transfer, restricted access to Chinese markets, respect for global rules and norms, efforts to limit freedom of navigation in worldwide waters and Chinese Communist Party interference in the politics of Western countries".

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Trump also replaced his attorney general Jeff Sessions last week immediately after heavy losses during the mid-term elections. White House press secretary Sarah Huckabee Sanders said Ms Ricardel will have a new role in the administration.

The Trump administration has been increasingly vocal in its criticisms of Beijing since the US midterm elections.

The commitments for now fall short of the type of major structural reforms that President Donald J. Trump has been demanding, two of the people said, cautioning that a long road lies ahead in negotiations. Prior to the meeting, the willingness to engage in discussion had been shown from both sides and this goodwill could be sustained particularly with the two high-level figures in attendance.

"China has long agreed to make concessions: import as many USA goods as possible and greatly relax local market access for US companies". The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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