Archive for ‘U.S. Treasury Secretary Steven Mnuchin’

15/05/2020

Trump says doesn’t want to talk to Xi, could even cut China ties

WASHINGTON (Reuters) – U.S. President Donald Trump signaled a further deterioration of his relationship with China over the coronavirus outbreak, saying he has no interest in speaking to President Xi Jinping right now and going so far as to suggest he could even cut ties with the world’s second largest economy.

In an interview with Fox Business Network broadcast on Thursday, Trump said he was very disappointed with China’s failure to contain the disease and that the pandemic had cast a pall over his January trade deal with Beijing, which he has previously hailed as a major achievement.

“They should have never let this happen,” Trump said. “So I make a great trade deal and now I say this doesn’t feel the same to me. The ink was barely dry and the plague came over. And it doesn’t feel the same to me.”

Trump’s pique extended to Xi, with whom the U.S. president has said repeatedly he has a good relationship.

“But I just – right now I don’t want to speak to him,” Trump said in the interview, which was taped on Wednesday.

Trump was asked about a Republican senator’s suggestion that U.S. visas be denied to Chinese students applying to study in fields related to national security, such as quantum computing and artificial intelligence.

“There are many things we could do. We could do things. We could cut off the whole relationship,” he replied.

“Now, if you did, what would happen? You’d save $500 billion,” Trump said, referring to estimated U.S. annual imports from China, which he often refers to as lost money.

Chinese foreign ministry spokesman Zhao Lijian told reporters in Beijing on Friday that maintaining a steady bilateral relationship served the interests of both peoples and would be beneficial for world peace and stability.

“Both China and the U.S. should now be cooperating more on fighting the virus together, to cure patients and resume economic production, but this requires the U.S. to want to work with us on this,” Zhao said.

Trump’s remarks drew ridicule from Hu Xijin, editor in chief of China’s influential Global Times tabloid, who referred to the president’s much-criticized comments last month about how COVID-19, the disease caused by the coronavirus, might be treated.

“This president once suggested COVID-19 patients inject disinfectants,” Hu said on Twitter. “Remember this and you won’t be surprised when he said he could cut off the whole relationship with China.”

CONCERNED, REVIEWING OPTIONS

U.S. Treasury Secretary Steven Mnuchin told Fox Business Network China needed to provide a lot more information about the coronavirus and Trump was reviewing his options.

“The president is concerned. He’s reviewing all his options. Obviously, we’re very concerned about the impact of this virus on the economy, on American jobs, the health of the American public and the president is going to do everything to protect the economy and protect American workers,” Mnuchin said.

“It’s a difficult and complex matter and the president has made very clear, he wants more information. They didn’t let us in, they didn’t let us understand what was going on.”

Trump and his Republican backers have accused Beijing of failing to alert the world to the severity and scope of the coronavirus outbreak and of withholding data about the earliest cases. The pandemic has sparked a sharp global recession and threatened Trump’s November re-election chances.

The United States has been hardest hit by the pandemic, according to official data.

China insists it has been transparent, and, amid increasingly bitter exchanges, both sides have questioned the future of the trade deal.

Opponents of Trump have said that while China has much to answer for over the outbreak, he appears to be seeking to deflect attention from criticism over his response to the crisis.

Scott Kennedy of Washington’s Center for Strategic and International Studies think tank called Trump’s remarks “dangerous bravado.”

“Avoiding communication is not an effective strategy for solving a crisis that requires global cooperation. And cutting off the economic relationship would badly damage the American economy,” he said.

Michael Pillsbury, a China analyst who has worked as an outside adviser to Trump, told Reuters he believed the president was concerned that China not only wanted to re-negotiate the Phase 1 deal, but also had not been meeting goals in purchasing from United States.

He said that according to figures cited by the China Daily, China’s purchases of U.S. products in the first four months of this year were 3% less than during the same period last year.

“It’s not good news for reducing the trade deficit or helping our economy recover from the coronavirus crisis,” he said.

China took some additional steps towards the Phase 1 goals on Thursday, buying U.S. soybean oil for the first time in nearly two years and issued customs notices allowing imports of U.S. barley and blueberries.

An executive from Chinese state agriculture trading house COFCO said China was set to speed up purchases of U.S. farm goods to implement the Phase 1 deal.

While U.S. intelligence agencies have said the coronavirus does not appear manmade or genetically modified, Trump said in his interview that China should have stopped it at its source.

“Whether it came from the lab or came from the bats, it all came from China, and they should have stopped it,” he said.

“It got out of control.”

Source: Reuters

29/10/2019

Donald Trump, Xi Jinping set for November 17 meeting in Chile to sign interim trade war deal: source

  • Chinese President Xi Jinping and US President Donald Trump set to meet on the sidelines of the Apec summit in Chile next month, a source says
  • The two state leaders are expected to sign an interim trade deal ‘if everything goes smoothly’
Chinese President Xi Jinping and US President Donald Trump have met twice already over the course of the 16-month trade war. Photo: AP
Chinese President Xi Jinping and US President Donald Trump have met twice already over the course of the 16-month trade war. Photo: AP

Chinese President Xi Jinping and US President Donald Trump are tentatively expected to meet on November 17 with the aim of signing an interim trade deal, a source briefed on the arrangements told the South China Morning Post.

The two leaders are expected to come face-to-face immediately after the Asia-Pacific Economic Cooperation (Apec) summit in Santiago, Chile, with a trade truce signed “if everything goes smoothly”, said the person, who declined to be identified.

Trade envoys from Beijing and Washington are still finalising the text for the two leaders to sign, but both sides have expressed optimism that Trump’s so-called phase one trade deal can be completed in time for the meeting.

Trump said on Monday that negotiations on the interim deal were running “ahead of schedule”.

“We are looking probably to be ahead of schedule to sign a very big portion of the China deal, and we’ll call it phase one but it’s a very big portion,” Trump said. “That would take care of the farmers. It would take care of some of the other things. It will also take care of a lot of the banking needs.

“So we’re about, I would say, a little bit ahead of schedule, maybe a lot ahead of schedule,” the president said, adding the deal would “probably” be signed.

Top trade negotiators for the two countries – US Treasury Secretary Steven Mnuchin, US trade representative Robert Lighthizer and Chinese Vice-Premier Liu He – spoke by telephone last Friday. The Office of the US Trade Representative released a statement after the call saying that the two sides “made headway on specific issues” and “are close to finalising some sections of the agreement”.

China’s official Xinhua News Agency said on Saturday negotiators have “agreed to properly resolve core concerns of each other” and had “basically completed technical discussions about parts of the text”. In particular, China would lift the current ban on US poultry imports and recognise the American public health certification system for meat product imports, Xinhua said.

The top trade envoys are expected to hold another conference call in the near future.

China's Vice-Premier Liu He between US trade representative Robert Lighthizer (left) and US Treasury Secretary Steve Mnuchin during trade negotiations in Washington this month. Photo: Reuters
China’s Vice-Premier Liu He between US trade representative Robert Lighthizer (left) and US Treasury Secretary Steve Mnuchin during trade negotiations in Washington this month. Photo: Reuters

Taoran Notes, an account on Chinese social media platform WeChat run by the official Economic Daily newspaper, wrote over the weekend that Beijing and Washington had moved a step closer to agreement on a “temporary deal”.

“According to past experiences and practises, the negotiation will enter the stage of translation and legal review after the technical completion of the text,” the account said.

Geng Shuang, a Chinese foreign ministry spokesman, said that technical negotiations about part of the deal were finished but deputy-level talks were ongoing. “China hopes both sides can find a trade solution based upon mutual respect and benefits,” Geng said at a regular press conference on Tuesday.

If it goes ahead as planned, the summit between Trump and Xi in Chile next month would be the third time the two leaders have sat down to talk about ending the nearly 16-month-long trade war.

Last December, the two leaders met on the sidelines of the G20 Leaders’ Summit in the Argentinian capital Buenos Aires and agreed to a three-month tariff truce to allow time for the countries’ trade envoys to work out a comprehensive deal. But the talks collapsed in early May with the US blaming China for reneging on promises it made in negotiations, while China blamed the US for attempting to infringe on its economic sovereignty.

The pair met again in late June in the Japanese city of Osaka, where they agreed to restart trade negotiations.

A minor ceasefire was reached in October when Beijing promised to buy US$40 billion to US$50 billion worth of American agricultural products in exchange for Washington postponing indefinitely a tariff increase on US$250 billion of Chinese goods to 30 per cent from 25 per cent on October 15.

Analysts expect fresh 15 per cent duties on about US$160 billion of Chinese imports – including popular products like smartphones and consumer electronics – that are due to go into effect mid-December will also be postponed if a deal is signed, though this has not been officially confirmed.

The interim deal is also expected to contain a provision on intellectual property protection, a key US demand. China has taken steps to improve IP protection, including setting up a system to punish and compensate instances of infringement, and improve settlement disputes. But how well these measures will be implemented remains in question.

China and the US would also agree to avoid allowing currency devaluations to gain trade advantages, codifying a commitment both countries made as part of a G20 agreement several years ago. A currency agreement – similar to provisions in the yet-to-be-ratified US-Mexico-Canada Agreement – could pave the way for the US to remove its designation of China as a “currency manipulator”.

The deal may include a new dispute resolution mechanism to ensure both sides live up to commitments. The system, which will give both sides equal standing, would replace a contentious US-proposed enforcement mechanism that was a key reason for trade talks breaking down in May after China felt the demands too intrusive and one-sided. It is unclear how effective the proposal would be, but the US has insisted since talks began that a similar mechanism be implemented to ensure China did not backslide on promises as it had in the past.

In addition to large purchases of farm products, the interim agreement may contain commitments by China to buy US-built aircraft and energy products, particularly liquefied natural gas.

China will also agree to lift foreign ownership limits on Chinese financial firms under the deal, changes which are already underway.

However, the interim deal will not address broader US complaints about China’s economic model, particularly allegations that foreign firms are treated unfairly and heavy government subsidies favour some domestic industries. Nor will it contain any break for telecommunications equipment maker Huawei and other Chinese tech companies that were blacklisted by the US on national security concerns.

Source: SCMP

17/10/2019

China says it hopes to reach phased trade pact with U.S. as early as possible

BEIJING (Reuters) – China’s commerce ministry said on Thursday that China hoped to reach a phased agreement with the United States over trade as early as possible, and make progress on canceling tariffs on each others’ goods.

A phased agreement would help restore market confidence and reduce uncertainty, Gao Feng, spokesman at the ministry, told reporters, adding that both sides were maintaining close communication.

On Oct. 11, U.S. President Donald Trump outlined the first phase of a deal to end the trade war with China and suspended a threatened tariff hike, but officials on both sides said much more work needed to be done before an accord could be agreed.

Trump had originally planned to proceed with a hike in tariffs to 30% from 25% on about $250 billion worth of Chinese goods last week. But the U.S. administration has yet to make a decision on how to address planned 10% tariffs on roughly $156 billion of Chinese goods due to take effect on Dec. 15.

U.S. and Chinese trade negotiators are working on nailing down a Phase 1 trade deal text for their presidents to sign next month, U.S. Treasury Secretary Steven Mnuchin said on Wednesday.

Mnuchin said the Trump administration’s “objective” was for the agreement to be signed between the presidents of the two countries at a Nov. 16-17 summit of Asia-Pacific Economic Cooperation countries in Santiago, Chile.

Working-level representatives from both countries are working on specifics of an agreement now, Gao said.
In recent days, there have been positive signs from China.
China’s securities regulator on Friday unveiled a firm timetable for scrapping foreign ownership limits in futures, securities and mutual fund companies for the first time.
Increasing foreign access to the sector is among the U.S. demands at the trade talks.
A day before, the U.S. Department of Agriculture confirmed net sales of 142,172 tonnes of U.S. pork to China in the week ended Oct. 3, the largest weekly sale to the world’s top pork market on record.
Trump said China had agreed to make purchases of $40 billion to $50 billion in U.S. agricultural goods. Mnuchin said the purchases would be scaled up to that amount annually.
On Wednesday, Chinese Premier Li Keqiang said China will remove business restrictions on foreign banks, brokerages and fund management firms, without giving details.
Source: Reuters
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