Daily Management Review

Long Road Ahead For A Trade Deal, Says China After Trump-Xi Ice-Breaking Meeting


06/30/2019




Long Road Ahead For A Trade Deal, Says China After Trump-Xi Ice-Breaking Meeting
There is a long road that the United States and China would be required to tread before both the parties would be able to achieve a trade deal, said Chinese state media, following the decision of the resumption of negotiations on trade talks between the two largest economies of the world to end the year long trade war after the meeting of US president Donald Trump and Chinese premier Xi Jinping earlier this week.
 
First initiated by Trump, the trade war has seen both countries imposing import tariffs on each others’ goods worth billions of dollars.
 
The two leaders met at the sidelines of the G20 summit held last week in Osaka, Japan. 
 
Despite the environment of positivity after the meeting, the official China Daily that is an English-language daily that is often used by Beijing to put its message out to the rest of the world, claimed that there is no guarantee of a trade deal even though the chances of achieving one is increased. "Even though Washington agreed to postpone levying additional tariffs on Chinese goods to make way for negotiations, and Trump even hinted at putting off decisions on Huawei until the end of negotiations, things are still very much up in the air," the newspaper said in an editorial late Saturday.
 
"Agreement on 90 percent of the issues has proved not to be enough, and with the remaining 10 percent where their fundamental differences reside, it is not going to be easy to reach a 100-percent consensus, since at this point, they remain widely apart even on the conceptual level."
 
Reports said that Trump was also ready to make some concessions in the case of the Chinese tech giant Huawei Technologies Co, the largest manufacturer of telecom equipment and the second largest smartphone maker of the world, to Xi. The Chinese company was blacklisted in May by the US Commerce Department which effectively barred all American companies from doing any business or sharing any technology with Hiuawei. The Trump administration fears that the equipment of Huawei could be used by Chinese agencies to spy on the US and hence the company is a threat to national security.
 
The Xi-Trump meeting had sent a "positive signal" to the world, said a top diplomat of the Chinese government's, State Councillor Wang Yi, in his statement about G20 which was issued by the Chinese Foreign Ministry. Despite the existence of a host of issues between the two countries, there is confidence in China that if the consensus arrived at by the two leaders are followed, it would be possible to find a solution to the issues, said Wang. The diplomat added in the statement that a trade deal would also have to be based on of mutual respect.
 
 
Trump's comments on Huawei, made at a more than hour-long news conference in Osaka following his sit-down with Xi, generated only a cautious welcome from China. The word "Huawei" was not mentioned at all in the top diplomat's appraisal of G20. Wang Xiaolong, the Foreign Ministry's special envoy of G20 affairs and head of the ministry's Department of International Economic Affairs, said if the United States does what it says on Huawei then China would of course welcome it.
 
In recent months, the position of China on the trade war and trade negotiations has become more rigid as the country has said that it would no longer be bullied into a trade deal and would fight out the trade war till the end. The United States was now aware that China was not going to give in, said Taoran Notes, an influential WeChat account run by China's Economic Daily. "We've said it before - communication and friction between China and the United States is a long-term, difficult and complex thing. Fighting then talking, fighting then talking, is the normal state of affairs," it said.
 
(Source:www.businesstoday.com)






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