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China has entered into trade negotiations with the United States in the coming days, according to informed people, which would further reduce the prospects for resolving a trade battle between the two largest economies in the world.
The decision to withdraw from the talks follows the latest escalation of trade tensions.
On Monday, President Trump announced new tariffs on Chinese imports of $ 200 billion, which prompted Beijing to retaliate by imposing $ 60 billion worth of US products. Mr. Trump then pledged to increase pressure on China by introducing tariffs on $ 257 billion worth of Chinese products.
The Chinese authorities have stated that they will not comply with pressure tactics. By refusing to participate in the talks, people said Beijing pledged not to negotiate under threat.
"Nothing the United States has done has given an impression of sincerity and good will," Chinese Foreign Ministry spokesman Geng Shuang told reporters on Friday. "We hope the United States will take steps to correct their mistakes."
The latest tariff exchange, which comes into effect next Monday, brings China and the United States closer to a generalized trade war.
Still, Beijing leaves open the possibility of starting new talks with Washington next month, the familiar people said.
Treasury Secretary Steven Mnuchin sent an invitation to Vice Premier Liu He, President Xi Jinping's economic czar, two weeks ago, calling for a new round of talks this month.
Previous negotiations had ended without any progress.
Trump officials have perceived Beijing's offerings – involving largely more Chinese purchases of agricultural products and other US products – as inadequate to meet the White House's demand for a land of fairer game for American companies in China.
Originally, Deputy Trade Minister Wang Shouwen, who headed China's negotiating team in the last round, was again to lead a group for the US negotiations. 28. Both trips were canceled, people said.
"There are no meetings at the moment," a senior White House official said Friday. "The President wants us to continue to engage in trying to get things done, but China needs to come to the table in a positive way."
Shipping containers in Shanghai in April.
Photo:
aly song / Reuters
The resumption of high-level trade talks by the two countries could set the course for future tariffs threatened by the Trump administration. People familiar with the administration's plans said Trump should issue a formal statement to begin the process of developing the next tariff tranche that, if fully implemented, would cover virtually all US imports. of Chinese products. 2017.
The threat of new tariffs could intensify rhetorical pressure on Beijing, but the current administrative process – holding public hearings, receiving written comments and conducting internal impact studies – would take weeks before new measures take effect.
The new tariffs are imminent and the threat of a possible increase, the Chinese authorities have wondered in recent days if the time had come to negotiate. Many representatives of Chinese political circles believe that Beijing should wait before the mid-November US elections to negotiate. They say that Mr Trump is not ready to reach an agreement and that he is now attacking China to appeal to his political base, although he may be more willing after the elections.
In the meantime, Beijing hopes that a possible summit at the end of November, at the time of the Group of 20 meetings, could be an opportunity for both parties to reach a settlement. To prepare for the potential high-level meeting, Chinese officials are still looking for ways to restart negotiations, people said. "The issue could be reconsidered in October," said one of the people.
Until now, Beijing's strategy has been to react forcefully to the commercial offensive of the Trump administration. But as China imports less from the United States – just under $ 130 billion last year – than the opposite, Beijing is short of products to penalize. If some reprisals in Beijing target US companies operating in China, as some officials have suggested, the country's leadership runs the risk of weakening the foreign investment climate and fleeing foreign capital as the Chinese economy slows down.
That's why President Xi has also ordered his officials to continue to dialogue with companies in Washington and the United States, according to Chinese officials and government advisers. For example, Mr. Liu has been trying in recent weeks to reassure US companies that there will be no retaliation against them.
Until now, the trade dispute has had a limited impact on the Chinese economy. Many government advisors and economists predict downward growth in the coming months due to weaker Chinese exports and rising unemployment rates. "The trade war will affect China's transition to better quality growth," said Wang Yiming, vice president of the State Council Development Research Center.
-Vivian Salama contributed to this article.
Write to Lingling Wei at [email protected]
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