China warns US no deal if tariffs go ahead

Commerce Secretary To Press China To Buy As Allies Seethe Over Tariffs

U.S. Hints at China Talks Progress as Trump Riles Trade Allies

Ross said USA and Chinese officials have discussed specific American export items Beijing might buy as part of its pledge to narrow its trade surplus with the United States.

Xinhua said China's attitude had been consistent and that it was willing to increase imports from all countries, including the United States.

Ross, who was preceded in Beijing this week by more than 50 US officials, was expected during the two-day visit to try to secure long-term purchases of USA farm and energy commodities to help shrink a $375 billion trade deficit with China.

Before Ross arrived with his team for the two-day talks, the USA and China had threatened tit-for-tat tariffs on goods worth up to $150 billion each.

But Trump upended the truce last Tuesday by renewing his threat to impose 25 percent tariffs on $50 billion in Chinese high-tech goods.

President Donald Trump announced that the USA will forge ahead with a plan to slap tariffs on $50 billion of Chinese imports just 10 days after the two reached the truce agreement in Washington.

The White House also said it will pursue tighter restrictions on Chinese investments and enhance export controls to protect USA technology and intellectual property. "The White House's tariff announcement on May 29 was just part of the negotiations for Wilbur Ross' visit to Beijing as they try to clinch deals that favour the USA", he said.

Ross and the large American delegation had dinner Saturday evening with their Chinese hosts. But the United States Commerce Secretary appeared to be the only one in a positive mood. "The Chinese side has realised that the U.S. has just delayed its trade actions rather than giving them up - but Beijing didn't expect a change of attitude so quickly".

Trump has pledged to reduce this as well as curtailing President Xi Jinping's "Made in China 2025" program, which will turn the world's second-largest economy into a technological powerhouse.

The U.S. delegation didn't comment after the talks but Ross earler said that the "meetings so far have been friendly and frank, and covered some useful topics about specific export items".

"That's a relationship with China that structurally has to change", he said.

China has promised to "significantly increase" purchases of farm goods, energy and other products and services.

On the Chinese side, officials including Commerce Minister Zhong Shan, Central Bank Governor Yi Gang, Vice Agricultural Minister Han Jun, and Li Fanrong, vice minister of national energy administration, accompanied Liu in the talks, according to a media pool report. China balked at making concessions unless the US lifted the tariff threat.

"But I also fundamentally believe that if there are structural changes that allow our companies to compete fairly, by definition, that will deal with the trade deficit alone".

The two-day talks in Beijing which ended on Sunday followed an earlier round in Washington where officials had met to discuss the situation.

The statement added that the negotiating process should be "based on the premise" of not fighting a "trade war".

The U.S. team also wants to secure greater intellectual property protection and an end to Chinese subsidies that have contributed to overproduction of steel and aluminum.

The looming tariff hikes have also raised hackles among U.S. trade partners in Canada, Mexico and the European Union, stoking fears that a full-scale trade war could erupt within days.

Latest News