President Donald Trump said on Friday (Nov 16) that China is ready to make a deal to defuse trade tensions, so he may not have to impose more import tariffs.
US President Donald Trump has imposed tariffs on US$250 billion of Chinese imports in an effort to force concessions from Beijing on his list of demands that would change the terms of trade between the two countries.
In October, the Economic Policy Institute, a Washington, D.C-based nonprofit, released a report showing that the us trade deficit with Beijing has increased dramatically in the 17 years since China joined the World Trade Organization. "They sent a list of things that they are willing to do".
Experts are tempering optimism of anything substantial resulting from the Trump-Xi meeting at the G20 summit, with some comparing the potential outcome with the agreement reached with the European Union last summer.
There is also some speculation that Trump is wary of going into the meeting with Xi amid falling USA stock valuations, and sees positive trade news as a tactic to boost the market ahead of the meeting. "We're convinced China knows where we stand".
And Mr Navarro said a deal with China agreed under pressure from Wall Street would bear a "stench". "The most likely scenario is that they commit to serious negotiations", he said, adding: "And then that sort of kicks the can and we see what happens". "Impossible", he said, according to Bloomberg.
Mr Trump says the new import tariffs are meant to punish China for "unfair" practices, such as theft of intellectual property, state subsidies of Chinese companies, and barriers to foreign firms.
Trump indicated he will continue to continue to take a hard line with China until the country changes.
Washington had said it would not start formal negotiations on trade until it saw concrete proposals from China to address its concerns.
Trade talks could hinge on whether tariffs rise in January. It responded to USA tariffs with its own protectionist measures and continues its multibillion-dollar One Belt investment program, which is meant to secure additional stable trade routes to its most important suppliers and customers.
Pence also made it clear in his remarks that the USA will stand firmly by its legal obligation and treaties with Taiwan.
In addition, Chad Bown of the Peterson Institute for International Economics, who has been studying the impact of the trade tariffs closely, said in a report on Thursday that Trump's tariffs on steel, which largely targeted China and other big producers, were inflicting collateral damage on poorer nations that are small producers and pose no threat to the U.S. economy.