US-China Trade Talks To Resume Next Week, Kudlow Confirms

Latest in the U.S China trade war news is that both sides are set to resume the halted talks next week, according to senior Trump administration officials.

“Those talks will continue in earnest this coming week,” said White House Economic Advisor Larry Kudlow while talking to reporters during a briefing.

An official of the Office of the U.S. Trade Representative (USTR) also confirmed that the two sides will be holding principal-level phone call meeting with Chinese officials next week.

“They’re on the phone. They’re going to be on the phone this coming week and they’ll be scheduling face-to-face meetings,” Kudlow said.

But Kudlow did not share any timeline for face-to-face talks, saying these might begin “soon.”

Talks broke down in May after U.S. officials accused China of backtracking from the commitments made in the tentative trade agreement’s text.

The two sides have been in communication by phone after the June-end meeting between U.S. President Donald Trump and China President Xi Jinping where they decided to relaunch the stalled talks.

Tariff truce in Osaka

To facilitate the dialogue with China, Trump made two concessions at his meeting with President Xi.

The U.S agreed not to slap further tariffs on $300 billion worth additional Chinese imports and offered to relax curbs on Chinese technology company Huawei.

Earlier in May, the U.S slapped 25 percent tariffs on $250 billion of Chinese goods ranging from semiconductors to furniture.

Washington’s issues with Beijing include China’s alleged abetment of intellectual property theft and forcing of U.S. companies to share technology with Chinese counterparts to do business there.

While the U.S wanted China to change laws, China denies such practices and is against changing any law at the bidding of America.

In the negotiations with China, the U.S. side was led by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin while China’s principal negotiator was Vice Premier Liu He.

Kudlow noted that the U.S has been very accommodative. “We will not lift tariffs during the talks,” Trump’s economic advisor added.

Kudlow also hoped that “China will toe its end of it by purchasing a good many American imports.”

US trade gap with China expands

According to the latest data by the US Commerce Department on Wednesday, the U.S trade deficit with China soared to a five-month high in May after Chinese imports to the U.S increased. This followed American businesses restocking ahead of any increase in tariffs on merchandise from China.

The trade deficit surged 8.4 percent to $55.5bn. Data for April also showed the widening of the trade gap to $51.2bn.

The goods trade deficit with China surged 12.2 percent at $30.2bn, with imports volume surging 12.8 percent. From the U.S, the export of soybeans and civilian aircraft increased.

Meanwhile, White House trade adviser Peter Navarro said talks with China are moving in the right direction, but it may take some more time to arrive at the “right deal.”