Economy

US, China to relaunch trade talk this week

US, China to relaunch trade talk this week

Beijing's envoy, Vice Premier Liu He, talked Tuesday with Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, the Commerce Ministry said.

At the same time, he said, President Donald Trump is keen on a deal and thinks China President Xi Jinping also holds the same position.

US demands for curbs to provincial and local subsidies for Chinese state companies, access to China's cloud computing market, agricultural biotech approvals and the scope of China's agricultural purchases remain divisive issues for the two sides.

Meanwhile, the Trump administration on Tuesday made a decision to exempt 110 Chinese imports from the ambit of high tariffs. "They keep backpedaling, and the hard-liners in China play right into the hands of hard-liners in the U.S".

The Trump administration says it will exempt 110 Chinese products, . ranging from medical equipment to key capacitors, . from hefty tariffs.

The US is demanding China make sweeping policy changes to better protect American intellectual property, end the forced transfer and theft of trade secrets and curb massive state industrial subsidies.

A second source said that USA tariffs on $250 billion worth of Chinese goods and Chinese tariffs on $160 billion worth of US goods could wind up being "the new normal".

The United States had imposed tough sanctions on the company, whose equipment U.S. officials fear could be used as Trojan horses for China's intelligence services.

Bank of Canada holds interest rate steady amidst trade uncertainties
The bank is now projecting second-quarter growth at an annual pace of 2.3 per cent, up from its April call of 1.3 per cent. The Fed has signaled a rate cut could come as soon as the end of July due to growing risks to USA economic growth.

During an interview with CNBC's Capital Exchange program on July 9, Kudlow said that while he preferred to take an optimistic view of the future, and believed a deal was possible, the remaining issues yet to be resolved presented a "tough" situation for both sides.

"We thought we had commitments, and those commitments were removed", he said.

On U.S. companies' sales to Chinese telecommunications giant Huawei, Commerce Secretary Wilbur Ross has clarified that the administration will allow American companies to do business with Huawei "as long as there's no threat to national security".

"The negotiating environment is even more severe", the official said.

Clete Willems of the law firm Akin Gump, who worked on trade talks in the White House until April, said Zhong's inclusion on the Chinese delegation could reflect internal Chinese bureaucratic politics. Washington wants Beijing to address what U.S. officials see as decades of unfair and illegal trading practices.

We look at recent developments in the US-China trade dispute and implications for agriculture.

Chinese officials may be delaying any trade concessions until they see how Trump's G-20 change on Huawei's purchases from USA companies is implemented and how the administration reacts to continuing protests in Hong Kong, according to one Trump supporter who has been briefed by administration officials and spoke on the condition of anonymity because the person was not authorized to speak publicly.