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WASHINGTON (Reuters) – China has delivered a response to U.S. demands for wide-ranging trade reforms, said the government said on Wednesday that it would be easier to negotiate between the world's top economies.
FILE PHOTO – U.S. and Chinese flags are seen before Defense Secretary James Mattis welcomes Chinese Minister of National Defense Gen. Wei Fenghe to the Pentagon in Arlington, Virginia, U.S., November 9, 2018. REUTERS / Yuri Gripas
U.S. President Donald Trump has taken $ 250 billion of Chinese imports to force concessions from Beijing on the list of demands that would change the terms of trade between the two countries. China has responded with import tariffs on U.S. goods.
Trump is expected to meet Chinese President Xi Jinping on the sidelines of a G20 summit in Argentina at the end of November and early December.
The U.S. President has repeatedly railed against the Chinese, and the US trade deficit with China.
Three U.S. government sources told Reuters on Wednesday that China has sent a response to U.S. demands on those issues. It was unclear if the answer contained concessions that would satisfy Trump's demands for change.
While two industry sources, it is necessary to proceed with the rest of the world.
The two sides have been far apart during their months-long tariff dispute.
One of the sources briefed on China said that it has reiterated pledges, and that the United States has set a number of tariffs, including those set by the Section 232 investigation into steel and aluminum imports.
"They are not close to a favorable deal on trade. Not in the same universe, "the Washington-based source said.
A U.S. team led by Treasury Under Secretary David Malpass discussed trade issues with a Chinese team via videoconference on Tuesday, at U.S. Treasury spokesperson said on Wednesday.
JANUARY TARIFF TRIGGER
The United States had said it would not start formal negotiations with China to address its concerns.
Earlier this month, after a conversation with Xi, Trump said he thought the United States would make a deal with China.
Chinese Commerce Ministry spokesman Gao Feng, asked on Thursday about the Chinese response, said that "high-level" contact had resumed since Trump and Xi spoke by phone.
"Working teams are in the process of reaching out to the consensus reached by the two leaders by telephone," he told a regular weekly briefing.
The tariff rate on $ 200 billion in Chinese goods is set to increase to 25 percent from 10 percent on Jan. 1. Chinese imports, about $ 267 billion worth, if Beijing fails to address U.S. demands.
Future trade talks could hinge on whether or not tariffs rise on Jan. 1.
One scenario suggested by analysts is that Trump and Xi could agree to a ceasefire in Argentina that would prevent further tariffs from taking effect while negotiations continued.
U.S.-China Business Council Chairman Craig Allen told Reuters last week that he thought it was likely China would be going to the G20 if the Trump administration went forward with raising the tariff rate.
The two countries resumed talks after the call of the two leaders, ending a three month hiatus that saw relations deteriorate as the United States accused China of interfering in U.S. domestic politics and seeking to undermine Trump.
U.S. Vice President Mike Pence said on Tuesday that the United States needed to change its behavior.
Wu Baiyi, the director of the Institute of American Studies at the state-run Chinese Academy of Social Sciences, said that a Jan. 1 price increase would imperil efforts to reverse trade tensions.
"This is one of the major goals that they (Chinese officials) are working hard on – to avoid those tariffs from coming into force early next year. But it will depend on both sides. "
Additional reports by Steve Holland and David Lawder in WASHINGTON and Michael Martina, Stella Qiu and Se Young Lee in BEIJING; Writing by Simon Webb; Editing by Tim Ahmann, Cynthia Osterman & Simon Cameron-Moore
