Daily Management Review

China Says Both US, China Should Make Compromises In Trade Talk


China would not trade its sovereignty to achieve a trade agreement and that it would not agree to any trade deal with the United States that undermines its sovereignty, the country said on Monday days ahead of a scheduled meeting between the Chinese President Xi Jinping and his US counterpart Donald Trump later this week on the sidelines of the G20 summit in Japan.
China also said that a trade agreement can be achieved by the parties if both the countries make compromises on their positions.
Xi and Trump are slated to meet in on between June 28 and 29 in Osaka, Japan.
The acrimonious trade war between the US and China was initiated by Trump last year. Since the US presidential election campaign, he has been demanding that China take measures to close down the huge trade deficit between the two largest economies of the world which last year reached more than $539 billion last year. Trump has also demanded that verifiable measures for protection of intellectual property rights (IPR) and technology transfer be worked out by China. He has also demanded that greater access of the Chinese market should be given to American companies.
Import tariffs have been imposed by the both the countries on each others’ goods worth billions of dollars.
If President Xi did not hold a meeting with him at the G20 Summit, he would "immediately" hike tariffs on the remaining $300 billion of Chinese imports into the US, Trump threatened last week. Trump has already imposed tariffs of 25 per cent on Chinese imports into the country worth more than $250 billion.
According to reports, a detailed telephonic discussion was held between Trump and Xi on June 18 for creating a platform for arriving at a trade agreement by resolving their differences so that the year-long trade war between the world's two largest economies could be brought to an end.
In order to make preparations for the Xi-Trump meeting, teams from the US and China are currently holding talks, said China's Vice Minister of Commerce Wang Shouwe to the media in Beijing before the talks.
China insists that mutual respect should form the basis of any agreement, he said while outlining the stance of China with respect to a deal to end the bruising trade war. He also added both the countries should treat each other as equals and a trade agreement should be such that it would offer win-win outcomes for both sides.
"Compromises should be made by both sides. It should be a two-way street. China and the US are member states of World Trade Organisation (WTO), so the agreement should be keeping in principles of the WTO," he said.
Since the beginning of the trade war, there have been 11 rounds of talks between high level trade representatives from both the countries to bring an end to the trade war.