Published: Fri, September 14, 2018
Finance | By Loren Pratt

U.S. Invites China to Trade Talks as Tariffs Loom

U.S. Invites China to Trade Talks as Tariffs Loom

Talk might be cheap, but it is certainly better than another round of multi-billion-dollar tit-for-tat tariffs between the United States and China.

"The Wall Street Journal has it wrong, we are under no pressure to make a deal with China, they are under pressure to make a deal with us".

"The administration is faced with the fact that if they go ahead with the US$200 billion, they will hurt the United States economy quite badly, and things are not going so well with the midterms", he said.

Some businesses are concerned about rising costs of imported materials; others, particularly farmers, about retaliatory tariffs imposed by China and Europe on USA exports.

President Donald Trump's push to impose tariffs on China and other countries is aimed at deterring what he views as unfair trade practices and, equally important, to encourage American consumers and businesses to buy and sell more goods made at home.

Chinese Foreign Ministry spokesman Geng Shuang told reporters China had received the invitation and welcomed it, adding that the two countries were in discussion about the details.

"Secretary Mnuchin who is the team leader with China has apparently issued an invitation", Kudlow told Fox Business Network.

Washington, Europe and other trading partners say those plans violate China's market-opening commitments.

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.

"The U.S. administration runs the risk of a downward spiral of attack and counterattack, benefiting no one", William Zarit said in the statement.

"Our markets are surging, theirs are collapsing", he wrote.

Sixty-four percent of companies that responded to the AmCham survey, which was conducted between August 29 and September 5, said the first round of tariffs that Trump slapped on $50 billion in Chinese imports this year have negatively affected their operations, while 63 percent said the same about the equal amount of duties Beijing imposed in retaliation.


China accuses the U.S. of launching "the largest trade war in economic history" and has retaliated in kind.

Businesses are ratcheting up lobbying against tariffs that the Trump administration has imposed, or is considering.

"I can't give you many details because there aren't many details".

Envoys from the two countries last met August 22 in Washington but reported no progress.

"China has indeed received an invitation from the USA and holds a welcoming attitude to it".

"This survey affirms our concerns: tariffs are already negatively impacting USA companies and the imposition of a proposed $200-billion tranche will bring a lot more pain", said Eric Zheng, chairman of AmCham Shanghai.

More than 60 percent of US companies polled said the USA tariffs were already affecting their business operations, while a similar percentage said Chinese duties on USA goods were having an impact on business.

That shows "neither side is 'winning, '" because "both are equally prone to losing companies", the chamber said.

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

USA business groups are escalating their fight against Trump's tariffs, with over 60 industry groups launching a coalition to put political pressure on the Trump administration to seek alternatives to tariffs.

On Thursday, the US business lobbies AmCham China and AmCham Shanghai published a joint survey showing that the negative impact on USA companies in China of tit-for-tat tariffs Washington and Beijing have imposed on one another was "clear and far reaching".

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