Published: Fri, February 01, 2019
Money | By Arnold Ball

Trump Says No Final China Trade Deal Until He Meets With Xi

Trump Says No Final China Trade Deal Until He Meets With Xi

The president's top economic adviser, Larry Kudlow, said that the talks with Liu He will determine whether a deal can be made by the end of the 90-day detente that Trump and China's Xi Jinping agreed on at the end of the G20 summit.

Liu and a delegation will met with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steve Mnuchin on Wednesday.

"Meetings are going well with good intent and spirit on both sides", Trump wrote.

An official with the U.S. Chamber of Commerce business group said after being briefed on the talks that significant differences remained between the two sides, with no new Chinese proposals to address core U.S. demands that Beijing end forced transfers of U.S. technology to Chinese firms, heavy state industrial subsidies and discriminatory digital trade laws.

He says: "All of the many problems are being discussed and will be hopefully resolved".

The United States and China launch a critical round of trade talks on Wednesday amid deep differences over USA demands for structural economic reforms from Beijing that will make it hard to reach a deal before a March 2 U.S. tariff hike.

"Those certainly are signs that the parties believe that some type of deal could be done", she said, adding that an escalation in tariffs would be in no one's interest.

Federal Reserve Chairman Jerome Powell told reporters on Wednesday that prolonged trade talks with China could hurt the U.S. economy by damping business confidence.

Moreover, a new complication injected itself into US-China relations on the eve of the talks when the Justice Department brought criminal charges Monday against the Chinese tech giant Huawei, accusing it of stealing technology secrets and violating sanctions against Iran.

Oil prices climb as US threatens sanctions against Venezuela
She noted that a ban on exporting United States dilutents to dilute heavy Venezuelan oil could greatly impact the nation. To churn out gasoline , jet fuel and other products, refineries require a healthy dose of heavy crude.

He is expected to meet with the Chinese delegation later Thursday.

"The Coming Collapse of China" author Gordon Chang discusses the trade dispute between the US and China.

But compelling China to reform its trade policies and treatment of foreign companies will be hard. The White House also plans to hike tariffs on $200 billion worth of Chinese imports from 10 percent to 25 percent.

China did offer at that meeting to go on a six-year buying spree to ramp up imports from the U.S., which was met with scepticism from The Trump administration.

US officials have demanded that Beijing make deep structural changes to its industrial policies, including broad new protections for American intellectual property and an end to practices that Washington has said force USA companies to transfer technology to Chinese firms in exchange for market access.

The draft legislation, which was first reviewed by the NPC's Standing Committee in December 2018, is said to ban compulsory technology transfer, guarantee equal treatment of foreign companies, and protect foreign companies' intellectual property rights. As part of the standoff between the world's two biggest economies, Washington imposed tariffs on $250 billion in Chinese imports.

Chinese officials are resistant to the wholesale changes sought by the USA and the charges against Huawei - one of China's biggest and most successful technology firms - have added to the political tensions.

Trump took a tough stance with China a year ago to end Beijing's decades-long protectionist and trade-distorting practices, by imposing tariffs and investment restrictions.

"The scope of these talks will be the broadest and deepest in U.S".

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