Washington does not expect a major deal with Beijing in next week's talks

Washington does not expect a major deal with Beijing in next week's talks

The US economy does not reach its 3% growth target in 2018

The United States expects China to accept the purchase of US agricultural products as a gesture of goodwill (AFP)

Washington: Middle East

LONDON (Reuters) – White House economic adviser Larry Kudlo said he was not expecting a major deal in trade talks with China next week, but that US negotiators hope that there is still room for more fruitful negotiations on the reduction of trade restrictions.
"They will meet next week in Shanghai," Kudlo said in an interview with CNBC. I do not expect much. I think, in discussion with our negotiators, that they will set the stage and hope that we will come back to the point where the discussions ended in May. " "We are well. We have not yet reached an agreement, but there are still structural problems related to the theft of intellectual property rights, the forced transfer of technology, cybercrime, barriers to commercial and non-commercial royalties and, no doubt, implementation mechanisms. "
The United States strongly hoped that China would accept the purchase of US agricultural products as a gesture of goodwill.
The White House announced Wednesday that US Treasury Secretary Stephen Menuchin and US Trade Representative Robert Laitheiser will meet with Deputy Prime Minister Liu Hehe for talks in Shanghai on Tuesday and Wednesday. This will be the first direct meeting of the two sides since US President Donald Trump and his Chinese counterpart Xi Jinping agreed to restart negotiations to end the two-year trade war.
This comes at a time when US economic growth in 2018 has not reached the target set at 3% by the administration of President Donald Trump, which could reiterate the criticism of the cuts in the economy. $ 1,500 billion taxes enforced by the White House.
The US Department of Commerce said Friday that gross domestic product rose 2.9% last year, according to estimates released in March. The annual review of GDP data carried out by the ministry showed that the economy had grown by 2.5% in the last half of 2018, until the fourth quarter of 2018, down by compared to the 3% previously reported.
US President Donald Trump highlighted the annual growth figure as proof that the tax cuts and heavy government spending, which contributed to the federal budget deficit, have placed the economy at risk. on a sustainable trajectory of strong growth.
The White House and Republicans have said that a significant tax cut, including a corporate tax cut of 35% to 21%, would offset their costs through strong economic growth. Democrats are attacking tax cuts for the wealthy Americans at the expense of the middle clbad.
"Economic growth in the second quarter, which slowed less than expected, was not bad, given the very heavy load of the Fed's anchor wrapped around our neck," said Trump. in a tweet yesterday.
US economic growth slowed less than expected in the second quarter of the year as consumer spending slowed in part due to lower exports and slowing inventories, which could ease concerns about the strength of the economy. 'economy. The Department of Commerce's relatively optimistic report, the Federal Reserve, will probably not prevent the Fed from lowering interest rates next Wednesday for the first time in 10 years, given the growing risk of the economic outlook, especially because of the interstate commercial war. United Nations and China.
Despite the GDP reading above expectations, investment declined for the first time since early 2016. The housing sector also declined for the sixth consecutive quarter.
Federal Reserve Chairman Jerome Powell said earlier this month that business and housing investment were weak sectors of the economy.
The US government said GDP grew at an annual rate of 2.1 percent in the second quarter. The economy recorded unspecified growth of 3.1% in the quarter between January and March. Economists polled by Reuters are forecasting GDP growth of 1.8% in the second quarter, while consumer spending, which accounts for more than two-thirds of US economic activity, rose 4.3% in the second quarter. second trimester. The pace since the last quarter of 2017. Consumer spending rose 1.1% in the first quarter.

America

United States