According to the US Census Bureau, the US had a merchandise trade deficit of around US$347 billion with China a year ago, down slightly from 2015. The Chinese response was the proposal for a 100-day plan for negotiations.
AmCham China chairman William Zarit said previous bilateral trade talks did not yield much, and only more market access for United States exports and investments could create a fair trade environment for the US.
Chad Bown, a trade expert at the Peterson Institute for International Economics, said such a transactional approach would potentially help reduce the USA trade deficit in the short term and appeal to Mr Trump's instincts as a dealmaker.
Before the meeting, Trump had tweeted that the discussion with his Chinese counterpart could prove to be "very hard". Intensified geopolitical tensions have continued to pressured Korean financial market with Korean won extending weakness for a 5th straight day against United States dollar while the country's benchmark equity index, KOSPI, recording the biggest one-day selloff in 6 weeks.
Details of the plan have yet to be worked out, but are expected to involve concessions on agriculture, starting with the lifting of a ban on American beef that has been in place since 2003 because of a disease scare in U.S. herds.
But many industry groups and economists argue that Trump would be better off pushing China to open its markets. This could solve one of the biggest bugbears for foreign investors into China, who are now not allowed to have majority stakes in Chinese securities and insurance companies.
Former Trump campaign chairman registering with US as foreign agent
But they have previously noted that they have no way of knowing whether Manafort received the money listed next to his name. It said officials there did not understand that Manafort and Gates were simultaneously being paid by the Party of Regions.
An article Zhang Jiadong, professor with the Center for Amercian Studies, Fudan University, cited by Global Times, indicated that Trump had taken a tough stance on some worldwide affairs, referring to his action over Syria and imposition of pressure on the North Korean nuclear issue. "They expressed an interest in reducing their net trade balance because of the impact it's having on money supply and inflation".
That could eventually lead to additional import duties, but any decisions on such punishments would depend on the probe's findings, not "pre-determined conclusions", said the official, who spoke on the condition of anonymity because the order was still being considered. Retaliatory trade measures could follow, according to results of the investigation.
"Given the range of issues and the magnitude, that may be ambitious, but it's a very big sea change in the pace of discussion", Mr Ross told reporters after the meeting, according to Reuters.
News of the agreement was greeted with expressions of relief that an all-out trade war had been averted-at least for the present. China insists the deficit is a systemic economic issue and not a result of deliberate Chinese policy. The concessions on finance and beef are relatively easy for Beijing.
Other products, including household appliances, could be targeted as well. If Trump sought to tax Chinese imports at a higher rate, they could respond in kind with their own tariffs. This is considered very unlikely in light of the agreement last week. "Had Obama been in office for another six months we would have gotten there", they said.
Trump struck a conciliatory tone, saying it had been an "honour" to host President Xi and his wife and that goodwill and friendship had been established.
Comments