Mar 26, 2018
USA, China silently seeks trade solutions after days of high threats
Comprehensive discussions aimed at broadening market access follow Washington's vote to use tariffs, which sent US stocks dramatically lower.
By Lingling Wei in Beijing and Bob Davis in Washington - March 25, 2018
China and the USA quietly began negotiating to improve U.S. access to Chinese markets, after a busy week with harsh words from both sides over the Washington menace to use tariffs to address trade imbalances, people with Knowledge of the said matter.
The lectures, covering broad areas, including financial services and manufacturing, are being led by Liu He, China's economic czar in Beijing, and U.S. Treasury Secretary Steven Mnuchin, and U.S. Trade Representative Robert Lighthizer in Washington.
In a letter sent by Messrs. Mnuchin and Lighthizer to Mr. Liu last week, the Trump administration has established specific requests that include a reduction of Chinese tariffs on U.S. automobiles, more Chinese semiconductor purchases from the USA and a greater Access to China by the financial sector by American companies. Mr. Mnuchin is thinking of taking a trip to Beijing to pursue negotiations.
On Saturday, Mr. Mnuchin called Mr. Liu, the Economic adviser of President Xi Jinping, having this been promoted as deputy Prime Minister during the annual legislative session fair-completed essentially makes it the economic captain of the country.
"Secretary Mnuchin congratulated on the official announcement of his new role " said the spokesperson of the Treasury. "They also discussed the trade deficit between our two countries and committed to continuing the dialogue to find a mutually pleasing way to reduce it "
The discussions behind the scenes could come as a relief to that last week's announcement in the U.S. planning to reach China with tariffs, investment limitations and other measures aimed at addressing the $ commodity trade deficit 375 billion of the USA with the second economic power of the world. The announcement — and the immediate threat of Chinese retaliation — sent U.S. stock prices into a steep decline.