- Chinese government officials told Reuters on Wednesday they have lowered their expectations for trade negotiations with the United States.
- China refused to talk about forced technology transfer, the most dissatisfied US policy toward China.
- According to news sources, the US government plans to partially cancel the ban on Chinese network equipment giant Huawei.
Trade talks between the US and China are scheduled to resume this week, on Thursday and Friday. The outside world is concerned about whether the two sides can end their 15-month trade war. According to Al Jazeera, the US government plans to partially cancel a ban on sales to Huawei, and allow them to continue to purchase parts from the United States.
Chinese government officials told Reuters on Wednesday they have lowered their expectations for trade negotiations with the United States today and tomorrow. They said that China is both surprised and frustrated that the United States has blacklisted Chinese companies. The official said that although Beijing theoretically wants to end the trade war, Chinese officials are not optimistic about any agreement with Washington in the short term.
Is there a good atmosphere and no big results?
Although Trump is optimistic about the prospects of the negotiations, the Chinese side seems to have reservations about the prospects of the new round of negotiations. According to the two people familiar with the matter, the South China Morning Post revealed that the deputy ministerial-level trade consultation between China and the United States failed to make any progress on key issues and did not lay the foundation for successive ministerial negotiations.
According to sources, in a discussion held in Washington on Monday and Tuesday, China refused to talk about forced technology transfer, the most dissatisfied US policy toward China. Speaking on condition of anonymity, the official also said that the negotiations did not mention the issue of state subsidies.
Instead, the two sides only focused on agricultural procurement and intellectual property protection. Another person familiar with the talks said “the two sides have not made progress.” He added that China has not made progress in persuading US negotiators to consider stopping the increase of tariffs, and this is a major priority for Beijing.
Cancel the ban on Huawei?
As China and the United States continue to try to resolve trade disputes between them, the views of the negotiators and the media reports present a contradictory picture. On the one hand, the Chinese negotiators claimed that they did not rule out the possibility that government-level negotiations started on Thursday may fail. On the other hand, there are reports that investors have disputed China-US trade disputes to curb global trade.
According to news sources, the US government plans to partially cancel the ban on Chinese network equipment giant Huawei, allowing Huawei to continue to purchase parts from the United States. Bloomberg also reported that the US and Chinese governments are expected to reach a consensus on the currency issue.
After the relevant media reports were published, the Japanese stock market rose. If the negotiations fail to make progress, Trump will increase the tariff on Chinese imports from the current 25% to 30% from next Tuesday. Mr. Trump hаѕ thrеаtеnеd tо raise tаrіffѕ оn $250 billion worth of Chinese goods this mоnth аnd tо impose аnоthеr ѕlеw оf tariffs in Dесеmbеr іf Beijing does not аgrее tо concessions thаt Washington has bееn dеmаndіng.
Sоmе іn thе Trumр administration, however, hаvе been eager tо аvоіd furthеr tаrіff іnсrеаѕеѕ аnd аrе рuѕhіng for a mоrе limited agreement, whісh wоuld end a trаdе wаr thаt hаѕ dragged оn for more than a уеаr. It іѕ not сlеаr whеthеr thе рrеѕіdеnt would аgrее tо a lіmіtеd pact оr whеthеr ѕuсh a dеаl саn bе ѕtruсk. Chіnа has continued to rеѕіѕt many оf the аdmіnіѕtrаtіоn’ѕ demands tо mаkе mоrе transformative сhаngеѕ tо thе wау it runs іtѕ economy. Thе twо соuntrіеѕ hаvе been оn thе cusp of an agreement bеfоrе, only tо hаvе thе аrrаngеmеnt fаll apart.