US and China seek deal to prevent trade-war escalation

United States and Chinese negotiators on Thursday kicked off two days of high-level talks that President Donald Trump says could decide whether he escalates the bruising tariff battle between the world’s two biggest economies.

Trump indicated this week he was open to extending a trade truce beyond March 1 depending on progress in Beijing. He is considering pushing the deadline back an additional 60 days, Bloomberg News reported, citing sources.

In December he postponed plans to sharply hike tariffs on $200-billion of Chinese imports to allow more time for negotiation.

The two economic superpowers have already imposed duties on more than $360-billion in two-way trade, which has weighed on their manufacturing sectors and shaken global financial markets.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are meeting with China’s top economic czar Liu He, seeking to build on progress made in Washington last month.

We are “looking forward to discussions today”, Mnuchin said as he left his hotel Thursday morning for the talks.

Expectations for a trade deal have grown as China faces pressure from slowing economic growth, and as swooning global markets pose a challenge to Trump and his economic advisors.

Data released Thursday in China showed its trade surplus with the US — a major source of anger within the Trump administration — narrowed in January to $27.3-billion, even as its American imports plunged 41 percent for the month from a year earlier.

Last year the surplus hit a record $323.3-billion.

China’s total imports also sank for the month, pointing to weak demand amid slowing economic growth.

Trump-Xi meeting

Chinese President Xi Jinping plans to meet with the US officials in Beijing this week, a report in the South China Morning Post said on Wednesday, bolstering hopes for the talks and world markets.

Trump also has said he expects to meet with Xi “at some point” to clinch a trade deal.

Trump told reporters in the Oval Office on Wednesday that preliminary talks in Beijing were “going along very well,” Bloomberg reported.

“They’re showing us tremendous respect,” he added.

“Markets will continue to watch — and react — closely to the ups and downs of the negotiations,” said Trey McArver of Trivium Research.

“But Sino-US relations are all about the two leaders, and it will ultimately be up to Xi and Trump to come to a deal — or not,” he wrote Wednesday in a newsletter.

The two sides said major progress was made in talks last month in Washington, but a wide gulf remains on some issues.

The US is demanding far-reaching changes to Chinese practices that it says are unfair, including theft of US technology and intellectual property, and myriad barriers that foreign companies face in the Chinese domestic market.

Beijing has offered to boost its purchases of US goods but is widely expected to resist calls for major changes to its industrial policies such as slashing government subsidies.

The International Monetary Fund warned on Sunday of a possible global economic “storm” as world growth forecasts dip, citing the US-China trade row as a key pivot point.

© Agence France-Presse

PW Botha wagged his finger and banned us in 1988 but we stood firm. We built a reputation for fearless journalism, then, and now. Through these last 35 years, the Mail & Guardian has always been on the right side of history.

These days, we are on the trail of the merry band of corporates and politicians robbing South Africa of its own potential.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

Ryan McMorrow
Ryan Mcmorrow

Ryan McMorrow was a China-based Fulbright Research Fellow. In his work documenting the lives of China’s peasant workers, he labored and lived in a Chinese foam factory, harvested wheat and planted rice on the plains of Henan, moved between construction sites, peddled fruit and ventured down into the coal-mines of Hunan. He has documented his stories on Chinadialogue.net, his well-received blog, amigrantslife.com and is now working on sharing the stories with a wider audience. Prior to starting the Fulbright Scholarship, he spent two years in Northern China living with local Chinese learning Mandarin. In 2011, he graduated from UCLA with a dual degree in East Asian Studies and Political Science.

Advertisting

Tension over who’s boss of courts

In a letter, Chief Justice Mogoeng Mogoeng questions whether Justice Minister Ronald Lamola has acted constitutionally

SABC sued over ‘bad’ clip of Ramaphosa

A senior employee at the public broadcaster wants compensation for claims of ‘sabotage’

Soundtrack to a pandemic: Africa’s best coronavirus songs

Drawing on lessons from Ebola, African artists are using music to convey public health messaging. And they are doing it in style

In East Africa, the locusts are coming back for more

In February the devastating locust swarms were the biggest seen in East Africa for 70 years. Now they’re even bigger

Press Releases

The online value of executive education in a Covid-19 world

Executive education courses further develop the skills of leaders in the workplace

Sisa Ntshona urges everyone to stay home, and consider travelling later

Sisa Ntshona has urged everyone to limit their movements in line with government’s request

SAB Zenzele’s special AGM postponed until further notice

An arrangement has been announced for shareholders and retailers to receive a 77.5% cash payout

20th Edition of the National Teaching Awards

Teachers are seldom recognised but they are indispensable to the country's education system

Awards affirm the vital work that teachers do

Government is committed to empowering South Africa’s teachers with skills, knowledge and techniques for a changing world

SAB Zenzele special AGM rescheduled to March 25 2020

New voting arrangements are being made to safeguard the health of shareholders

Dimension Data launches Saturday School in PE

The Gauteng Saturday School has produced a number of success stories