Initial trade deal with U.S., the purpose of Xi Jinping

China wants to draft an initial trade pact with the United States and has tried to avoid a trade war, President Xi Jinping said Friday, but is not afraid to retaliate when needed.

Economists warn that a protracted dispute between the world’s two largest economies is raising risks for the global economy by disrupting supply chains, diminishing investment and curbing business confidence.

“We want to work for a ‘phase one’ agreement on the basis of mutual respect and equality,” Xi told representatives of an international forum, according to a pool report.

“When needed, we will fight again, but we have actively worked to try not to have a trade war. We did not start this trade war and this is not something we want.”

Xi was responding to questions from representatives of the New Economy Forum hosted by Bloomberg LP at the Great People’s Hall in Beijing.

Global financial markets pulled out this week for fear that trade talks could collide with the US President. Donald Trump is expected to sign into law two bills that support protesters in the city with Chinese government Hong Kong.

Concerns of a wider deterioration in Sino-US ties were weighed on the markets this week. US warships twice sailed near islands claimed by China in the South China Sea in recent days, angering Beijing.

Completing a phase of a trade deal could pass next year, trade experts and people close to the White House have told Reuters, with Beijing demanding wider tariff returns and Washington responding to growing demand. .

The delays will bring more problems, said Fred Hu, founder of China-based global investment firm Primavera Capital Group.

“The longer it takes, the more variables, such as the Hong Kong issue,” Hu told Reuters on the Bloomberg forum side.

Beijing and Washington must strengthen communication on strategic issues, the official Xinhua news agency quoted Xi as saying Friday.

“Sino-US relations are at an important juncture amidst various difficulties and challenges,” Xi said during a meeting with former US Secretary of State Henry Kissinger in Beijing.

“Both the United States and China must strengthen their communication on strategic issues and avoid misunderstandings and misunderstandings.”

China has invited key US trade negotiators for a new round of face-to-face talks in Beijing, the Wall Street Journal said, citing unidentified sources. She added that Beijing hoped talks could take place before Thursday’s US Thanksgiving holiday.

US officials have indicated a willingness to meet but have not set a date, she added, and they would be willing to travel for discussion unless China made it clear it would make commitments. for the protection of intellectual property, forced technology transfers and agricultural purchases.

“My guess is that tariff relief would be provided in exchange for a one-phase deal. And, it also seems to me that this is the only basis on which any deal could be made, certainly from the Chinese side’s perspective,” he said. former US Trade Representative Charlene Barshefsky.

“Otherwise, this is a completely one-sided exercise, and I’ve never known the Chinese to negotiate unilateral agreements to their detriment,” she said in a group interview on the sidelines of the Bloomberg forum.

Officials from Beijing had suggested Xi and his US counterpart Donald Trump might sign an agreement in early December.

Some experts said the next date to be seen was December 15, when US tariffs of about $ 156 billion on Chinese goods were set to take effect, including holiday gift items such as electronics and Christmas decorations.

“As we always said, we do not want to start the trade war, but we are not afraid,” Xi said.

In Beijing on Wednesday, Deputy Prime Minister Liu He, China’s chief negotiator in trade talks, said he was cautiously optimistic about a phase one deal, Bloomberg News said, citing people attending a dinner event ahead of the forum.

“The two countries should strike a deal as soon as possible, at least a ceasefire, and this will inject some security into the market and economy,” Hu said.

“Based on this, we can clear a consensus on complex structural problems and strive for a final comprehensive agreement.”/


Stay updated with INFOEUROPEFX to find out the latest news about economy.