talks on trade deal, China purchases of U.S. goods
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The Bund is where the flags of China and America fly before U.S. Trade delegations meet with their Chinese counterparts to discuss trade in Shanghai, China, July 30, 2019.
Reuters| Reuters
China stated that on Saturday, it demanded the United States remove tariffs from talks between their top trade officials. Washington considered this a test for bilateral engagement between some of the most powerful economies in the world.
Following Tai’s Monday announcement that she wanted “frank” discussions and held China accountable to the “Phase 1” trade agreement negotiated by ex-President Donald Trump, Katherine Tai became U.S. Trade Representative.
After the talks on Friday Washington Time, China’s Xinhua state media agency stated that the Chinese side had reached an agreement on the cancellation of sanctions and tariffs, as well as clarified its position regarding China’s economic model and industrial policies.
A USTR official stated that Tai had intended to make the second call between them to see if bilateral engagement could address U.S. concerns about Beijing’s trade- and subventionary practices.
USTR stated in a statement that “Ambassador Tai and Vice Prime Liu examined the U.S. China Economic and Trade Agreement and concluded that they would continue to discuss certain remaining issues.”
Xinhua reported that both sides had “expressed core concerns” and reached an agreement to address each other’s concerns by way of consultation.
“Both parties agree to keep in touch with each other using an equal approach, mutual respect and to foster the development of healthy economic and trade relations between both countries. This will help to recover the global economy. It said.
U.S. refers to China’s “authoritarian state-centric” approach
A senior USTR official stated that Tai would provide Liu with an evaluation of China’s progress in the implementation of Phase 1, including promises to purchase U.S. products that have fallen short of their targets, during a briefing before the call.
Additionally, she would be concerned about China’s non-market economic practices.
The official stated that Beijing was becoming more explicit about its autoritarian state-centric approach. He also said that Beijing has resisted attempts to address structural issues. We will keep our main focus on building resilience, competitiveness and diversifying markets to limit Beijing’s damaging practices.
According to the official, Tai said that future relations with China would be based on China’s response to “tonight’s call”. He declined to talk about possible next steps but stated that Tai won’t seek trade negotiations in Phase 2 with Beijing regarding state subsidies or other structural issues.
Jan’s Phase 1 Agreement ended the long-running tariff war between the two world’s largest economies. The deal was mainly focused on China’s pledge to increase U.S. farm, manufactured, and energy purchases by $200 billion in two years. It also included increased protections of copyrights, trademarks, and other intellectual property.
To address more complex issues, such as China’s industrial strategy and subsidies for state-owned enterprises, the Trump administration envisaged a Phase II negotiation.
The official was asked if America would launch another investigation under “Section 301”, which could see more tariffs placed on Chinese goods if negotiations with Beijing fail. He said that the United States will employ “the whole range of tools” to protect American workers, farmers, and businesses from unfair trade practices.
Tai is fluent Mandarin speaker, the daughter of Taiwanese immigrant parents. She considers the phone call to be a test for whether this type engagement will secure the desired outcomes. “We’re entering with the hopes of China responding positively,” said the USTR official.
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