China says world trade system not ideal, needs reform

  • China says world trade system not ideal, needs reform

China says world trade system not ideal, needs reform

China said on Thursday that it welcomed an invitation by the United States to hold a new round of trade talks, as Washington prepares to further escalate the US-China trade war with tariffs on US$200 billion worth of Chinese goods. "If we meet, we meet". So, as Trump's tariff hikes on Chinese imports keep ramping up, China is naturally running out of room to retaliate.

The current world trade system is not ideal and China supports reforms to it, including to the World Trade Organization, to make it fairer and more effective, Beijing's top diplomat said.

China welcomed on Thursday a U.S. offer to hold fresh trade talks, adding that the two are discussing the details and providing some hope the world's top economies could step back from the brink of an all-out trade war. "And so, Secretary Mnuchin, who is the team leader with China, has apparently issued an invitation". In China, the yuan jumped and stocks rose.

The talks could stave off the growing costs for American firms, though the two sides have failed to reach an agreement over several rounds of negotiations in spring and summer.

It's unclear yet what specific sectors have been affected by the suspension, but it will likely include industries that Beijing has promised to open to foreign businesses, such as banking, securities, insurance and asset management, said Jacob Parker, vice-president for China operations of the USCBC.

"Our markets are surging, theirs are collapsing", he wrote. We will soon be taking in Billions in Tariffs & making products at home.

So far, the United States and China have hit $50 billion worth of each other's goods with tariffs in a dispute over USA demands that China make sweeping economic policy changes, including ending joint venture and technology transfer policies, rolling back industrial subsidy programs and better protecting American intellectual property.

"I think most of us think it's better to talk than not to talk, and I think the Chinese government is willing to talk", he said.

More than 60 per cent of USA companies polled said the US tariffs were already affecting their business operations, while a similar percentage said tariffs by China on US goods were having an effect on business.

But Kudlow was non-committal over the chances of a breakthrough, adding: "I guarantee nothing".

The US and China have slapped tariffs on $50bn of one another's goods this year in an escalating trade war between the world's two largest economies.

A worker places U.S. and China flags near the Forbidden City ahead of a visit by U.S. President Donald Trump to Beijing, in Beijing, China November 8, 2017.

In recent meetings with cabinet-level Chinese officials, USCBC representatives were told that licensing won't resume "until the trajectory of the U.S".

The U.S. administration is readying a final list of $200 billion in Chinese imports on which it plans to levy tariffs of 10-25 percent in coming days, which would ramp up the trade war between the world's two largest economies.

That shows "neither side is 'winning, '" because "both are equally prone to losing companies", the chamber said. The business lobby urged Washington to reconsider its approach.

The Journal reported that the USA reached out because of political pressure on Trump to ease up on trade fights ahead of November's midterm elections.

On Wednesday, more than 60 USA industry groups launched a coalition - Americans for Free Trade - to take the fight against the tariffs public.

But US firms are feeling whiplash from both sides as they sell and make goods in China, with Washington's border tax increase and Beijing's counter-punch hurting more than 60% of businesses, according to the poll. -China Business Council, said this week Chinese officials told it they were postponing accepting license applications from American companies in financial services and other fields until relations improve.