United States destroyer sails in disputed South China Sea amid trade talks

09 January, 2019, 08:24 | Author: Eric Barnett
  • China-U.S. trade talks restart as warship clouds negotiations

The Chinese side firmly opposes the relevant action by the USA side and urges the United States to immediately stop such provocations.

Negotiators are seeking to resolve a number of thorny issues that have threatened an all-out trade war between the world's two biggest economies.

Officials on both sides have said little else about the progress of discussions so far, though a leaked photo from Monday indicated a surprise appearance of Liu He, China's vice-premier, at the otherwise low-ranking meeting.

The American delegation is led by a deputy USA trade representative, Jeffrey D. Gerrish, and includes agriculture, energy, commerce, treasury and State Department officials.

U.S. Navy Destroyer, the USS McCampbell, conducted a freedom of Navigation operation (FONOP) in the South China Sea on Monday, Jan. 7, which quickly drew an angry response from Beijing.

US President Donald Trump also said trade talks were going "very well", and he was confident that both sides will come to an agreement.

The meetings are the first face-to-face talks since Trump and Chinese President Xi Jinping agreed in December to a 90-day truce in a trade war that has roiled global financial markets.

Since March, the US has slapped tariffs on $250 billion worth of Chinese goods, while China has placed a series of retaliatory tariffs on USA goods totaling $110 billion. Trump has given U.S. Trade Representative Lighthizer until March 1 to negotiate an accord with the Chinese on "structural changes" to Beijing's state-driven economic model.

In public statements aides like Wilbur Ross, the commerce secretary, and Peter Navarro, a White House trade adviser, have played down the impact of the trade wars on markets, the US economy and companies.

Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods past year and has threatened more to pressure Beijing to change its practices on issues ranging from industrial subsidies to intellectual property to hacking.

The trade clash reflects American anxiety about China's rise as a potential competitor in telecommunications and other technology.

Treasury officials have made the case that market volatility is in part due to the tightening of USA monetary policy, and a result of the trade war with China. The threat of US tariff hikes was the "dominating factor" for almost half, while others moved because of higher costs or tighter environmental regulation. -Chinese relations. They say Beijing's goal probably is to show enough progress to persuade Trump to extend his deadline.

Chinese officials have suggested Beijing might alter its industrial plans but they reject pressure to abandon a strategy seen by communist leaders as a path to prosperity and greater global influence.

Beijing might demand changes to USA curbs on exports of "dual use" technology with possible military applications. These include expanded Chinese purchases of American products, greater protections for United States intellectual property, constraints on Chinese industrial policy, and enforcement and verification of follow-through by China.

The two countries have held meetings over many months, stalling at times. There is no question that the Chinese want the deal, they need the deal.



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