New US-China trade talks spur hope

Beijing: US trade negotiators return to China this week for a fresh round of talks in a new city, but experts warn a change of air is unlikely to quickly solve an impasse between the world’s two biggest economies.

The meetings in Shanghai tomorrow and Wednesday will be the first face-to-face discussions since negotiations collapsed in May after US President Donald Trump accused China of reneging on its commitments.

Washington and Beijing have so far hit each other with punitive tariffs covering more than US$360bil (RM1.5 trillion) in two-way trade in the tense stand-off.

Despite an agreement by Trump and President Xi Jinping at the G20 in Japan to cease hostilities, there has been little progress since — and the US leader has irritated the Chinese side by claiming the slowing economy is forcing them to make a trade deal.

The dispute has centred on US demands for China to curb the alleged theft of American technology and provide a level-playing field to US companies in the Asian country.

Trump has also angered China by blacklisting telecom giant Huawei over national security concerns.

“Basically China tried to take this as a pure economic affair and just wants to make a deal, but on the US side it seems ... (they) try to connect the trade affairs with a strategic rivalry,”‌ Wang Chuanxing, professor at Tongji University, said.

“The common ground is that both of the sides want to strike a deal, so this is very important.”‌

The re-starting of talks is seen as a positive step, and the change of location to the leading city of commerce Shanghai is also suggestive.

“It could be an attempt to distance the consequences of the negotiations from Xi Jinping and the people immediately around him,”‌ said Michael Pettis, finance professor at the Guanghua School of Management at Peking University.

Holding talks in Shanghai is also a nod to a time of better relations, as the home of the 1972 Shanghai Communique — an important step in building diplomatic relations between the US and China.

“There’s a significance to (China) of the Shanghai Communique and the symbolism obviously of that important agreement,”‌ US Treasury Secretary Steven Mnuchin told CNBC, adding that he would take the invite to Shanghai as “good news that we will be making progress next week”‌.

However Mnuchin, who will be joined by US trade representative Robert Lighthizer in Shanghai, warned there were “a lot of issues”‌ and he expected follow-up talks in the US. — AFP

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