WASHINGTON: The United States and China failed on Wednesday to agree on major new steps to reduce the US trade deficit with China, casting doubt over President Donald Trump’s economic and security relations with Beijing.
The annual economic dialogue session in Washington ended with cancelled news conferences, no joint statement and no new announcements on US market access to China.
The two sides had a “frank exchange” but failed to agree on most major bilateral trade and economic issues that were important to the United States, a senior US official said on condition of anonymity because he was not authorised to speak publicly.
These included US demands for access to China’s financial services markets, reducing excess Chinese steel capacity, reductions in auto tariffs, cutting subsidies for state-owned enterprises, ending Chinese requirements for data localisation and lifting ownership caps for foreign firms in China, the official said.
“China acknowledged our shared objective to reduce the trade deficit which both sides will work cooperatively to achieve,” US Treasury Secretary Steven Mnuchin and US Commerce Secretary Wilbur Ross said in a brief statement, highlighting a rare point of consensus. The Chinese Embassy in Washington cast the talks in a positive light, saying in a statement that both sides had acknowledged “significant progress” on the 100-day talks and would like to work together to reduce the trade deficit.
“The two sides will expand areas of cooperation in services and increase trade in services; expand mutual investment, and create a more open, equitable, transparent and convenient investment environment,” the embassy said. Both sides agreed that one of the solutions to address the trade imbalance is for the United States to expand exports to China, instead of reducing imports from China, said Chinese Vice Finance Minister Zhu Guangyao after the conclusion of the talks.
To address the imbalance, China has been urging the United States to remove regulations on export control and increase the exports of high-tech products to China, the official Xinhua news agency cited Zhu as saying.
China will push for this in a one-year action plan for economic cooperation which both sides discussed, Zhu said.
The session had been billed as a follow-up to Trump’s first meeting with Chinese President Xi Jinping at his Mar-A-Lago, Florida, estate in April when Trump hailed Xi’s cooperation in curbing the threat from North Korea. Trump said that this would lead to better trade terms for China. — Reuters
Oman Observer is now on the WhatsApp channel. Click here
