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Trump says China trade talks 'back on track,' new tariffs on hold

News Service
10:15 - 1/07/2019 Monday
Update: 10:17 - 1/07/2019 Monday
REUTERS
File photo: U.S. President Donald Trump and China's President Xi Jinping meet business leaders at the Great Hall of the People in Beijing, China
File photo: U.S. President Donald Trump and China's President Xi Jinping meet business leaders at the Great Hall of the People in Beijing, China

RELIEF AND SCEPTICISM

Scores of Asia specialists, including former U.S. diplomats and military officers, urged Trump to rethink policies that "treat China as an enemy," warning that approach could hurt U.S. interests and the global economy, according to a draft open letter reviewed by Reuters on Saturday.

Investors, businesses and financial leaders have for months been warning that an intractable tit-for-tat tariff war between the United States and China could damage global supply chains and push the world economy over a cliff.

International Monetary Fund Managing Director Christine Lagarde on Saturday urged G20 policymakers to reduce tariffs and other obstacles to trade, warning that the global economy had hit a "rough patch" due to the trade conflict.

Although analysts cheered a resumption of talks between Washington and Beijing, some questioned whether the two sides would be able to build enough momentum to breach the divide and forge a lasting deal.

"Translating this truce into a durable easing of trade tensions is far from automatic ... especially as what's in play now extends well beyond economics to include delicate national security issues of both immediate- and longer-term nature," said Mohamed El-Erian, chief economic adviser at Allianz.

The United States says China has been stealing American intellectual property for years, forces U.S. firms to share trade secrets as a condition for doing business in China, and subsidizes state-owned firms to dominate industries.

China has said the United States is making unreasonable demands and must also make concessions.

The negotiations hit an impasse in May after Washington accused Beijing of reneging on reform pledges made during months of talks. Trump raised tariffs to 25% from 10% on $200 billion of Chinese goods, and China retaliated by raising levies on a list of U.S. imports.

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5 years ago