WASHINGTON — The United States (US) president Donald Trump on Thursday hinted at progress in his high-stakes trade battle with China, saying talks with Beijing’s envoy had gone well.
The remarks added to an atmosphere that had grown warmer during the day after Trump announced he would grant an audience at the White House to top Chinese trade envoy Liu He.
“I will say I think it’s going really well,” Trump told reporters, offering no details. “We had a very, very good negotiation with China.”
The new signs of comity were an abrupt improvement after a week in which Washington blitzed Beijing with aggressive policy measures and talks appeared headed for a dead end just days before US duties on 250 billion US dollars in Chinese imports are due to rise.
Wall Street closed higher, with investors buoyed by hopes that at least escalation might be averted even if an overarching resolution was beyond reach.
But pressure on the two sides to defuse the confrontation has mounted in recent weeks as signs have grown increasingly clear the trade war – now more than a year old – poses a mounting danger to the global economy.
China this year balked at Trump’s demands for a profound transformation to the way it manages its economy, and analysts say Beijing is unlikely to adopt economic reforms that could undermine the Communist Party’s political power.
Speculation has instead focused on the possibility the two sides will seek to seal an incremental deal this week as a confidence-building measure.
Myron Brilliant, head of international affairs at the US Chamber of Commerce, told reporters on Thursday he had spoken with both sides and that an agreement on currency could emerge this week.
“I think that could lead to a decision by the US administration not to put forward a tariff rate hike on Oct. 15,” he said.
The US Treasury in August branded China a currency manipulator, accusing Beijing of deliberately weakening the Chinese currency, renminbi, to gain unfair trade advantages, making good on a Trump campaign pledge.
Media reports early in the week had also said the Chinese side was preparing an offer that falls short of addressing Trump’s core grievances but would increase purchases of US farm exports and make smaller concessions in return for a pause in tariff increases. (AFP)
