Tuesday, 11 December, 2018

U.S. makes trade talks move as pressure mounts ahead of midterms

China TradeMore China TradeMore
Ginger Lawrence | 14 September, 2018, 08:55

Even Mr. Scott said the tariffs have failed to accomplish Mr. Trump's stated goal of forcing better trade deals, notably with China, and reducing the USA trade deficit.

"We are under no pressure to make a deal with China, they are under pressure to make a deal with us", Mr Trump said in a tweet on Thursday. "If we meet, we meet?" he wrote.

The announcement followed reports by American and European chambers of commerce that foreign companies in China have been hurt by earlier tariff hikes by both sides in the fight over Beijing's technology policy.

"Even if all of the tariffs threatened by Trump on autos and China are imposed, those would amount to, at most, 0.8 percent of GDP, which would cause barely a ripple in growth, inflation or employment numbers", said Mr. Scott, senior economist at the think tank. "And so, Secretary Mnuchin, who is the team leader with China, has apparently issued an invitation".

The official China Daily said that while China was "serious" about resolving the stand-off through talks, it would not be rolled over, despite concerns over a slowing economy and a falling stock market at home.

"American companies are suffering both from China's retaliatory tariffs, and - ironically - from USA tariffs created to harm the Chinese economy", the two chambers said in a statement.

One researcher at Taiwan's Chung-Hua Institution for Economic Research, Roy Chun Lee says that "the historical example of the U.S. -Japan economic conflict suggests that the U.S". Our markets are surging, theirs are collapsing.

Sixty-four percent of companies that responded to the AmCham survey, which was conducted between August 29 and September 5, said the first round of tariffs that Trump slapped on $50 billion in Chinese imports this year have negatively affected their operations, while 63 percent said the same about the equal amount of duties Beijing imposed in retaliation.

One of the highest-profile casualties of the trade war was U.S. chipmaker Qualcomm's (QCOM) $44 billion acquisition of Dutch rival NXP Semiconductors (NXPI), which China killed in July by refusing to grant it regulatory approval.

"I think most of us think it's better to talk than not to talk, and I think the Chinese government is willing to talk", Kudlow said.

Turkey central bank surprises markets with big rate hike
There had been indications from the bank that it would raise rates after inflation came in at almost 18 percent in August.

But he cautioned: "I guarantee nothing".

"We have indeed received an invitation from the USA side".

The US and China have slapped tariffs on $50bn of one another's goods this year in an escalating trade war between the world's two largest economies.

Trump said last week that he also had tariffs on an additional $267 billion worth of goods ready "on short notice if I want".

The last talks, between mid-level USA and Chinese officials on August 22 and 23, failed to reach any agreement.

Eric Zheng, chairman of AmCham Shanghai, said he supported the administration's goal to push Beijing into overhauling trade practices Trump considers unfair.

The invitation, first reported by the Wall Street Journal, comes amid a swelling chorus of opposition to tariffs from Western business circles.

Some 63.6 percent of more than 430 companies that responded to the American chambers' survey said profits and customer demand have fallen due to the US tariffs and 62.5 percent said the same about retaliatory Chinese tariffs.

The timing and location of the proposed meeting were unclear, the sources familiar with the matter said.

US business groups are escalating their fight against Trump's tariffs, with over 60 industry groups launching a coalition to put political pressure on the Trump administration to seek alternatives to tariffs. -China Business Council, said this week Chinese officials told it they were postponing accepting license applications from American companies in financial services and other fields until relations improve.