China-US trade talks to resume after G20 tariff truce

July 31, 2019 00:00:00

A car with a US flag arriving at the Fairmont Peace Hotel on The Bund in Shanghai, China on Tuesday — Reuters

SHANGHAI, July 30 (AFP): US negotiators arrived in Shanghai on Tuesday to resurrect trade talks with Chinese officials, with both sides downplaying expectations of an imminent deal between the world's two biggest economies.

The negotiations in the financial hub will be the first face-to-face discussions since US President Donald Trump agreed to a truce with Chinese President Xi Jinping at June's G20 summit after previous talks broke down over US accusations that China reneged on its commitments.

Washington and Beijing have so far hit each other with punitive tariffs covering more than $360 billion in two-way trade, in a tense stand-off centred on demands for China to curb the alleged theft of American technology and provide a level playing field to US companies.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin arrived in Shanghai on Tuesday, a source close to the talks told the news agency.

Vice Premier Liu He will likely lead the talks for China again, with the two sides expected to meet later Tuesday ahead of a full day of talks on Wednesday.

The negotiations come as Beijing faces heavy pressure over ongoing civil unrest in Hong Kong, and with lingering ill-feeling between the US and China.

Days before the Shanghai meeting, Trump threatened to pull recognition of China's developing nation status at the World Trade Organization - prompting an irritable reply from Beijing about the "arrogance and selfishness" of the US.

Trump said Friday he believed Chinese negotiators were hoping to delay a deal until after the US presidential election next year, adding: "When I win… they're all going to sign deals."

The US leader has also angered the Chinese side by claiming the slowing economy is forcing them to make a trade deal, and blacklisting telecom giant Huawei over national security concerns.

In a commentary on Tuesday, state news agency Xinhua admitted relations were "strained" and called for the US to "treat China with due respect if it wants a trade deal".

But the kick-starting of trade negotiations is still being seen as positive - even if little of substance is expected - following a truce agreed between Trump and Chinese President Xi Jinping at the G20 in June.

"Realistically, this round of talks is about clarifying where the two sides stand after a significant lull in engagement," said Jake Parker, senior vice president at the US-China Business Council.