Published: Mon, May 20, 2019
Worldwide | By Isabel Fisher

After Huawei blow, China says USA must show sincerity for talks

After Huawei blow, China says USA must show sincerity for talks

China and the United States have failed to reach a temporary truce in their trade war.

The United States is likely to permanently lose soybean export market share in China the longer U.S.

As it stands, the United States has already put tariffs on Dollars 250 billion worth of Chinese goods and is gearing up to include Dollars 300 billion worth of goods in the list.

If the U.S. doesn't make any new moves that truly show sincerity, then it is meaningless for its officials to come to China and have trade talks, according to Taoran Notes, a WeChat blog run by state-owned Economic Daily.

The United States accuses China of resorting to predatory tactics in a drive to give Chinese companies an edge in advanced technologies such as artificial intelligence, robotics and electric vehicles.

On Thursday, Washington put telecoms equipment maker Huawei Technologies Co Ltd, one of China's biggest and most successful companies, on a blacklist that could make it extremely hard for the telecom giant to do business with USA companies.

The 10 per cent tariffs from last September levied on US$200 billion worth of Chinese imports entering the United States have been increased to 25 per cent this month.

Huawei's Hisilicon unit, which purchases U.S. semiconductors for its parent, has been secretly developing back-up products for years in case Huawei was one day unable to obtain the advanced chips and technology it buys from the United States, its president told staff in a letter on Friday.

China's state media signaled a lack of interest in resuming trade talks with the US under the current threat to escalate tariffs, while the government said stimulus will be stepped up to buttress the domestic economy.

Until the blowup of the past week, the two countries appeared to be making progress. As the two economic superpowers up the ante in this conflict, we are given a textbook lesson on how the trade war is distorting economic factors. The trade dispute between the global top two economies heightened, with the US hiking tariffs.

US President Donald Trump, who has embraced protectionism as part of an "America First" agenda aimed at rebalancing global trade, has accused China of backing out of a deal earlier this month that would have ended the 10-month dispute. The second assertion is clearly incorrect, as it is US businesses and consumers who will bear the brunt of higher tariffs in the form of higher prices on imported Chinese goods. "They want to take over the world".

Cloudier than they were. While this would also decrease the value of China's own portfolio, it could jolt the U.S economy. The International Monetary Fund expects Chinese economic growth to slip from 6.6% past year to 6.3% in 2019 and 6.1% in 2020.

The impact of trade friction on China's economy is "controllable", the state planner said on Friday, pledging to take countermeasures as needed, Meng Wei, a spokeswoman for the National Development and Reform Committee (NDRC), told a media briefing. And, "from the start this wouldn't work."He also reiterated "China-U.S. economic and trade consultation can only follow the correct track of mutual respect, equality and mutual benefit for there to be hope of success". That's because virtually every American is likely to feel an impact if Trump's tariffs go forward on just about everything imported from China. Our trade relationship with China absolutely needs a reset.

Both Mr Trump and Mr Xi are looking to do a deal before or at the G20 summit in Osaka at the end of June. The administration threatened still more if the Chinese do not accept American demands on intellectual property and verification procedures.

A sharper and more aggressive tone in state media doesn't rule out short-term progress in trade talks, as rhetoric can be dialed back just as quickly.

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