Trade war: China, U.S. to resume talks late August

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China will send a senior negotiator to the United States in late August to resume trade talks, its commerce ministry said Thursday.

This is the first public meeting on the dispute in weeks as the trade conflict between both intensifies.

Beijing and Washington have slapped tariffs on tens of billions of dollars worth of each other’s goods since they held their last high-level meeting in June, raising fears that the trade war could shake the global economy.

At the invitation of the United States, a delegation led by Vice Commerce Minister, Wang Shouwen, the deputy representative on international trade negotiations, will meet with a team led by senior US Treasury official, David Malpass, the ministry said in a statement.

“The Chinese side reiterates that it opposes unilateralism and trade protectionism practices and does not accept any unilateral trade restriction measures,” the ministry said.

“China welcomes dialogue and communication on the basis of reciprocity, equality and integrity.”

US Commerce Minister, Wilbur Ross, held talks with Chinese Vice Premier, Liu He, in Beijing in June. Liu had met with US Treasury Secretary, Steven Mnuchin, in Washington a month earlier.

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But the discussions failed to reduce tensions as the United States slapped tariffs on $34 billion worth of Chinese goods in early July, triggering an immediate dollar-for-dollar retaliation from Beijing.

The two countries are expected to launch a new round of tit-for-tat tariffs on $16 billion worth of goods from each country on August 23.

Washington has also lined up an additional $200 billion in Chinese imports and US President, Donald Trump, said he could raise tariffs on those products to 25 percent instead of the previously touted 10 percent.

China responded by threatening in early August to impose new tariffs on $60 billion worth of US goods.

The yuan has declined in recent weeks, helping Chinese exporters as it makes their products cheaper, but it could fuel tensions with Trump, who has accused Beijing of manipulating its currency.

Chinese officials say the tariffs have yet to make an impact on the country’s economy, with its exports even beating forecasts in July.

The threatened tariffs on $200 billion worth of Chinese goods could have “some direct impact” on industrial production, employment, foreign trade and commodity prices, but “the overall impact is generally controllable,”Spokesman at the National Development and Reform Commission, Cong Liang, told reporters on Wednesday.

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But analysts warned that China could feel the full effect of tariffs in August.

Trump has boasted that trade wars are “easy to win” and warned he would hit virtually all Chinese imports if Beijing does not back down and take steps to reduce its $335 billion surplus with the US.

China does not import enough from the United States to match Washington dollar-for-dollar, but it has warned that it could fire back with other measures.

Agency Report