Published: Fri, June 07, 2019
Markets | By Otis Pena

China Ready to Resume Talks With US: OK, But Under What Conditions?

China Ready to Resume Talks With US: OK, But Under What Conditions?

In an escalation of the trade tensions, Washington on May 10 increased additional tariffs on 200 billion U.S. dollars' worth of Chinese imports from 10 per cent to 25 per cent, and has threatened to raise tariffs on more Chinese imports.

On June 4, the Chinese Ministry of Commerce replied to the USA response by saying the accusation of backpedaling "is nothing more than mudslinging and is not acceptable to China".

Hopes for an imminent trade deal were shattered in May after the Trump administration more than doubled tariffs on $200bn (£157.9bn) of Chinese imports and threatened additional duties.

China will stockpile up to 7 million tonnes of soybeans bought from the United States during an earlier truce in the trade war between the nations, two traders familiar with the matter said, rather than crush them for immediate sale as a feed ingredient.

China's export volumes to the USA fell by 9.7% year-on-year in the first four months of 2019 due to the United States tariff measures.

The agencies, which have taken the lead in negotiations for the US side, said that the impetus for the negotiations was China's "long history of unfair trade practices" and USA negotiating positions have been consistent throughout the talks.

"The Chinese People's Volunteers, in the face of the world's top military and economic power and diplomatic blackmail, made full use of the Communist Party's spirit of not being afraid of pressure, daring to fight and being good at fighting", it said.

Since they were launched in February 2018, the economic and trade consultations have come a long way with China and the USA agreeing on most parts of the deal.

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The paper listed, in chronological order, three times when the USA backtracked on a deal.

One of the major hurdles in talks was China's tech industry. In the ensuing 90 days, the working teams of China and the US held three rounds of high-level consultations in Beijing and Washington D.C., reaching preliminary consensus on many matters of principle for the China-US economic and trade deal.

BEIJING, June 2 (Xinhua) - Accusing China of stealing intellectual property to support its own development is an unfounded fabrication, according to a white paper titled China's Position on the China-US Economic and Trade Consultations released by the State Council Information Office on Sunday. Vice Commerce Secretary Wang Shouwen told reporters, "We're willing to adopt a cooperative approach to find a solution".

"A country's sovereignty and dignity must be respected, and any agreement reached by the two sides must be based on equality and mutual benefit", the report said. However, the USA has repeatedly imposed tariffs and blamed China for the sense of frustration in the negotiations with the intention of putting extreme pressure on China to seek absolute interests, while deceiving the worldwide community.

While China was willing to work together with the USA to reach a "mutually beneficial and win-win agreement", the paper said "mutual respect" was key.

The US has wanted to keep tariffs in place as part of the enforcement mechanism and to be the sole arbiter of whether China had broken the terms of the deal, analysts say.

No official trade talks have been scheduled since the last round ended in May.

Trump has said he is expecting to meet Chinese President Xi Jinping at the G20 summit at the end of this month in Japan, though China has declined to confirm this.

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