U.S. and China fail to reach agreement on trade
July 24, 2017 Category Foreign trade, Weekly
U.S. and Chinese government officials held the first high-level Comprehensive Economic Dialogue, co-chaired by U.S. Commerce Secretary Wilbur Ross, U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Wang Yang. The talks are one of four mechanisms aimed at increasing dialogue. However, the countries failed to reach agreement after a day of talks in Washington, and canceled their respective press conferences. At the opening session, Mnuchin said the dialogue’s purpose was to pursue a “fair and balanced economic relationship” between the U.S. and China, addressing imbalances caused by Beijing’s interventions in the Chinese economy, and communicating to revise existing policies and regulations or reach new ones. Over the last 15 years, according to Wilbur Ross, China’s exports to the U.S. have grown 268%. The trade imbalance has increased 205% to USD309 billion from USD101 billion. China now accounts for nearly 50% of the U.S. goods trade deficit.The U.S. could impose quotas and tariffs to further block Chinese steel and aluminum imports into the American market, in a sign of the Trump administration’s dissatisfaction and impatience with limited progress in the ongoing trade talks, analysts said.
Vice Premier Wang Yang urged the United States to loosen its “outdated” restrictions on high-tech exports to China so it can tap the vast Chinese market and reduce the bilateral trade imbalance. Wang said that as China upgrades its industries, there is a huge market for U.S. exports of advanced technologies, key equipment and critical parts to China. “Unfortunately, American businesses have not had their fair share of the cake due to outdated U.S. regulations on export control,” he told a luncheon attended by U.S. Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and hundreds of Chinese and U.S. business leaders. Wang cited China’s import of integrated circuits, which hit USD227 billion last year, more than the import of crude oil, iron ore and primary plastics combined. But only 4% of China’s integrated circuit imports came from the U.S. If the U.S. were to liberalize its export barriers against China to the same level applicable to France, the U.S. trade deficit with China would drop by up to 34%, Wang said. Foreign Ministry Spokesman Lu Kang told a regular news conference that Wang’s speech has sent three key messages: cooperation is the only right choice for China and the U.S.; China’s development has long-term certainties; and the Chinese market has huge potential.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world