Why slowing economies could prod United States and China to reach deal

Adjust Comment Print

American envoys are due in Beijing for talks Monday in a tariff battle over Chinese technology ambitions.

China on Friday confirmed that a vice ministerial level delegation from the United States will visit Beijing next week for "proactive and constructive talks" to flesh out agreements reached between President Xi Jinping and U.S. counterpart Donald Trump in Argentina last month. The reports also said that the US team would be headed by Deputy US Trade Representative Jeffrey Gerrish and would include Under Secretary of the Treasury for International Affairs David Malpass. Its one-sentence announcement gave no other details of the agenda or who else would take part.

But if the two economic superpowers are unable to reach a lasting deal within a 90-day deadline set by their leaders, the damaging trade war could escalate further with the imposition of more tariffs on hundreds of billions of dollars of goods.

Despite its softening economy, China will likely find it hard to comply with US demands to slow its economic ambitions.

"The negotiations next week are important because they will establish expectations, but we shouldn't expect major breakthroughs", said Mr Myron Brilliant, vice-president of global affairs at the US Chamber of Commerce.

U.S. President Donald Trump has again expressed confidence that he can put an end to the trade war with China which is jolting the global economy.

"There are certainly compelling reasons for both sides to reach a deal and avoid further tariff increases", said Cutler, now vice-president at the Asia Society Policy Institute. But economists say that is too little time to resolve the sprawling disputes that bedevil U.S.

Data this week showed a marked loss of momentum in the world's two largest economies at the end of past year.

The office of the United States Trade Representative also released a statement Friday announcing the delegation that would be representing the US.

The Wall Street Journal earlier reported about the trip and said that if there is progress in negotiations, Chinese trade officials led by Vice Premier Liu He will follow up with talks in Washington the following week.

Chinese officials are unhappy with United States curbs on exports of "dual use" technology with possible military applications. American exports to China fell nearly 30 percent in October compared to a year earlier.

Apple's lowered revenue outlook along with a double-digit drop in earnings at commodities giant Cargill Inc on Thursday may be among the clearest warning signs yet that the trade war's effects have begun to hit USA companies.

Comments