In Depth: US-China Trade Deal
China hopes to reach a phased agreement in a protracted trade dispute with the United States and remove tariffs as soon as possible, the PRC Ministry of Commerce said Thursday, adding that trade wars have no winners..
According to ministry spokesman Gao Feng, the phased agreement will help restore market confidence and reduce uncertainty, adding that the two sides are in close communication..
«The ultimate goal of negotiations on both sides is to end the trade war and remove all additional tariffs, Gao said. “It will benefit China, the United States and the world. We hope that both sides will continue to work together, move the negotiations forward and reach a phased agreement as soon as possible.».
Chinese Prime Minister Li Keqiang said that both China and the United States need to resolve issues through dialogue. He commented on the situation Thursday during a meeting with delegates led by Evan Greenberg, Chairman of the US-China Business Council.
«China will create an international business environment governed by law, where domestic and foreign firms are treated equally, Li said. – Ownership and intellectual property rights will be strictly protected».
White House economic adviser Larry Kudlow, meanwhile, said he sees momentum to complete the initial phase of a trade deal that could be signed at an APEC forum next month in Chile..
President Donald Trump outlined the first phase of the deal on October 11 and suspended planned tariff increases, but officials on both sides said more work needed to be done..
Trump was originally planned to continue raising tariffs on Chinese goods worth about $ 250 billion last week to 30% from 25%. But the US administration has not yet decided how to deal with the planned 10% tariffs for approximately $ 156 billion worth of Chinese goods due December 15.
US Treasury Secretary Stephen Mnuchin said on Wednesday that US and Chinese resellers are working to agree on the text of the first round of bidding that their presidents will sign next month..
Mnuchin said that «aim» the Trump administration was to sign an agreement between the presidents of the two countries at the Asia-Pacific Economic Cooperation Summit on November 16-17 in Santiago, Chile.
According to Gao, representatives of both countries are working on the specifics of the agreement..
There have been positive signals from China in recent days.
On Friday, the Chinese securities regulator released a clear timetable for lifting limits on foreign ownership of futures, securities and mutual fund companies. Expanding foreigners’ access to the sector is one of the US demands in trade negotiations.
The day before, the USDA confirmed net sales of 142,172 tonnes of US pork to China in the week ending October 3, making it the largest weekly global pork sale on record..