Daily Management Review

Efforts Ongoing To Complete Phase One Trade Deal With US, Says China


Efforts Ongoing To Complete Phase One Trade Deal With US, Says China
China attempted to allay fears that the trade negotiations with the United States could be getting off track as the country’s commerce ministry said on Thursday that Beijing will strive to reach a "phase one" of the proposed trade agreement with Washington and both the sides have kept communication channels open.
Chinese commerce ministry spokesperson Gao Feng told reporters that equality and mutual respect will form the basis for resolution of the core concerns of both the United States and China and Beijing is willing work closely with Washington on that basis.
"This is in line with the interests of both China and the United States, and of the world," Gao said.
The disruption of global supply chains, discouragement for investments and lowering of business confidence have been the result of the protracted trade war between China and the United States  which is increasing the risks for slowdown of the global economy, economists have warned.
According to an earlier report published by Reuters quoting trade experts and people close to the White House, the so called phase one of the trade deal between the US and China is likely to get signed some tine early next year because of pressure from Beijing on Washington to make more extensive tariff roll back while the US administration itself is contending with increased demands from the partial deal.
It is possible that Chinese President Xi Jinping and US president Donald Trump could sing the phase one deal in early December according to reports quoting officials from Beijing.
According to analysis, the markets is looking at December 15, the date when the latest round of tariffs announced by the US on $156 billion in Chinese goods is set to take effect. The latest proposed tariffs targets among other things holiday gift items such as electronics and Christmas decorations.
According to a Bloomberg News report citing people with direct knowledge of the matter , Chinese Vice Premier Liu He said he was "cautiously optimistic" on a phase one deal while speaking in a dinner speech in Beijing on Wednesday.
Bloomberg also said that the Liu, who has been the chief negotiator for the trade talks from the Chinese side, also reportedly told one of the attendees of the dinner function that he was "confused" about the US demands. He however also expressed confidence that despite all the roadblocks the two parties would get the first phase of the trade deal completed.
The US and China have, in recent weeks, engaged in a fresh tussle over a proposed legislation in the US related to Hong Kong. According to some reports, China is strictly opposed to the legislation being passed and many are concerned that the US stand on the Hong Kong impasse and political demonstrations going on for more than 5 months now could also derail the phase one of the trade deal between the two largest economies of the world.