US Says China Backtracked On Trade Commitments, Talks Continue

US Says China Backtracked On Trade Commitments, Talks Continue

US Says China Backtracked On Trade Commitments, Talks Continue

Chinese officials said they still intend to travel to Washington for planned trade talks on Wednesday despite Trump's threats.

More wet weather is on the way for the central USA where flooding is already a major issue.

The 150-page trade agreement was sent to Washington from Beijing with edits that reversed China's position on several core US demands, Reuters reported, citing unnamed sources familiar with the document.

But their arrival is unlikely to stop the U.S. from going ahead with plans to raise import taxes on $USUS200 billion ($280 billion) in Chinese goods at 12.01am Friday, New York time, in a dramatic escalation of a year-long trade war.

Trump was reacting to the developments when he threatened Sunday to raise import taxes on $200 billion worth of Chinese goods to 25 percent from 10 percent this Friday.

China has just informed us that they (Vice-Premier) are now coming to the U.S.to make a deal.

The United States is demanding Beijing make sweeping changes to its trade and regulatory practices, including protecting USA intellectual property from theft and forced transfers to Chinese firms, curbs on Chinese government subsidies and increased American access to China's markets.

Lighthizer has pushed hard for an enforcement regime more like those used for punitive economic sanctions - such as those imposed on North Korea or Iran - than a typical trade deal.

"The president, I think, is trying to get China's attention and get them back to the table", said Thune.

A spokesperson at the Chinese Embassy in Washington did not immediately respond to queries about the United States assertions.

The US was not breaking off talks with China, he said.

Geng referred specific questions on the trade talks to the Commerce Ministry, which did not respond immediately to faxed questions from Reuters.

Treasury Secretary Steven Mnuchin declined to give specifics but said the U.S. side had originally hoped to conclude a deal either way this week. The two cabinet officials on Monday told reporters that Chinese backtracking had prompted Trump's tariff order but did not provide details on the depth and breadth of the revisions. Both Mnuchin and Lighthizer considered that unacceptable, given China's history of failing to fulfil reform pledges.

The latest flare-up in trade tensions will likely cool if talks continue as expected, Tianjie He of Oxford Economics said in a commentary.

"China reneged on a dozen things, if not more".

"They have their internal politics, too", said Michael Pillsbury, director of the Hudson Institute's Centre on Chinese Strategy and an adviser to the Trump White House.

The US, which accuses China of unfair trading practices, launched a trade war against China past year. Art Cashin, director of floor operations at the New York Stock exchange said: "It's putting a bid under the market". And while some market analysts still expect the countries to clinch a deal, others think Mr. Trump's aggressive rhetoric is unlikely to sway the Chinese.

The uncertainty hit USA markets hard on Tuesday, with the Dow marking its second-worst trading day of the year with a 473-point plunge.

Against the yen, the dollar fell 0.1 percent to 110.13 yen for its fourth-day of losses against the Japanese currency and just off a near six-week low of 110.09 yen brushed earlier in the session. "They're competing with our companies", said Scott.

Top Chinese negotiator Vice Premier Liu He heads to Washington this week for talks, and some investors have seen Trump's threat as a negotiating tactic. "We do not think Beijing will submit to bullying by the USA president".

To avert escalation, some of the sources said, Liu would have to scrap China's proposed text changes and agree to make new laws.

"China supplies the United States with several chemicals which are not available anywhere else and which are critical inputs to U.S. manufacturing", he said, noting that China is also is the number three USA export market.

But only hours after Trump's tweets, China's Commerce Ministry warned that the government will "have to adopt necessary countermeasures" if the USA implements its plan to raise duties.

"The Trump administration seems to have concluded that it is time to get it done".

More time for talks!

Related news