White House adviser Peter Navarro has said that China Phase 1 trade deal is likely to be signed in the next week but he also mentioned to wait for the confirmation from President Donald Trump or the US Trade Representative. #USChina #US #China #TradeDeal

White House adviser says US-China trade deal soon

The <a href="https://www.wionews.com/world/china-us-agree-to-restart-trade-talks-at-xi-trump-meeting-report-231374">United States and China are set to relaunch trade talks</a> this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed.

After meeting with Chinese President Xi Jinping in Japan just in late June, US President <a href="https://www.wionews.com/world/g20-summit-donald-trump-confirms-wont-impose-new-tariffs-on-china-231445">Donald Trump agreed to suspend a new round of tariffs</a> on $300 billion worth of imported Chinese consumer goods while the two sides resumed negotiations.

Trump said then that China would restart large purchases of US agricultural commodities, and the United States would ease some export restrictions on Chinese telecom equipment giant Huawei Technologies.

But sources familiar with the talks and <a href="https://www.wionews.com/business-economy/oil-prices-drop-as-trade-tensions-stoke-economy-worries-234147">China trade</a> watchers in Washington say the summit did little to clear the path for top negotiators to resolve an impasse that caused trade deal talks to break down in early May.

A US official said last week the <a href="https://www.wionews.com/world/us-china-trade-officials-aim-to-talk-next-week-officials-233488">discussions were expected to resume with a phone call</a> between US <a href="https://www.wionews.com/business-economy/oil-prices-drop-as-trade-tensions-stoke-economy-worries-234147">Trade </a>Representative Robert Lighthizer, Chinese Vice Premier Liu He and Treasury Secretary Steven Mnuchin.

A USTR spokesman said the call was expected this week, but gave no further details.

The United States is demanding that China make sweeping policy changes to better protect American intellectual property, end the forced transfer and theft of trade secrets and curb massive state industrial subsidies. At stake, US officials say, is the dominance of the high-tech industries of the future, from artificial intelligence to aerospace.

"We've had a change in atmospherics," said Derek Scissors, a China expert at the American Enterprise Institute, a business-oriented Washington think tank. "While this is great for markets, the administration has not said one specific thing about how we're unstuck."

Scissors, who has at times consulted with Trump administration officials, said that both sides got what they wanted out of the summit -- a lowering of the temperature and the avoidance of new tariffs that would have been painful for both sides.

Watch: US-China trade friction hurting world economic chain: Chinese scholars

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"The pressure for one side to give in to the other is diffused right now. I expect this to drag out for months," Scissors added.

No firm commitments

Washington and Beijing appear to have different ideas of what the two leaders agreed in Osaka.

Three sources familiar with the state of negotiations say that the Chinese side did not make firm commitments to immediately purchase agricultural commodities.

In pics: <a href="https://www.wionews.com/photos/why-china-is-afraid-of-us-abrams-tanks-to-be-delivered-to-taiwan-234260">Why China is afraid of US Abrams tanks to be delivered to Taiwan</a>

One of the sources said Trump raised the issue of agricultural purchases twice during the meeting, but Xi only agreed to consider purchases in the context of a broader final agreement.

Other than a small purchase of American rice by a private Chinese firm, no purchases have materialized. Chinese officials and state media accounts in the past week have emphasized that any deal, including agricultural purchases, is dependent on the removal of US tariffs.

"The Chinese have been clear they didn't promise anything," said one source familiar with the talks.

"The idea they would give up their main leverage before getting anything doesn’t make sense. I could see them buying some pork and buying some soybeans, but it's still going to be pennies."

Trump administration officials have also downplayed the extent of pledges to allow Huawei to purchase US technology products, with White House trade adviser Peter Navarro saying that only "lower-tech" US semiconductors could be made available for sale to the company. [nL2N243133].

Reuters reported last week that the Commerce Department's export control enforcement staff was told to continue to treat Huawei as a blacklisted entity as the department considers requests for licenses to US&nbsp;firms to sell products and services to Huawei [nL2N24402Y]

Chinese officials point out that they only got the United States to concede on Huawei at the Osaka talks, rather than on their other demand, which was removing the existing tariffs.

So the focus on the upcoming talks will be the scrapping on the tariffs, they say.

A second source said that US tariffs on $250 billion worth of Chinese goods and Chinese tariffs on $160 billion worth of US goods could wind up being "the new normal."

One Chinese official familiar with the situation said that trade talks would be re-started very quickly, but that there was a "fairly large gap" in the core demands of both countries and it would be a challenge to reach consensus on the toughest issues.

"The negotiating environment is even more severe," the official said.

Another official said <a href="https://www.wionews.com/world/sale-of-weapons-to-taiwan-violates-one-china-policy-cancel-it-immediately-china-to-us-234236">China remained concerned</a> about the presence of hawks in the US&nbsp;team, such as Trump advisor Peter Navarro.

"There are bullies there," the official said.

The officials spoke to Reuters on condition of anonymity.

China's foreign ministry cited Xi as telling Trump at Osaka that "on issues concerning China's sovereignty and dignity, China must safeguard its core interests".

A senior Beijing-based Asia diplomat said there would be pressure on China's leadership not to give in to the United States and for any outcomes to seen as equal and balanced.

"A trade deal cannot be portrayed as a victory for the United States," the diplomat said, citing conversations with Chinese officials.

Which text?

There has been no indication the two sides will resume negotiations using a text that had been largely agreed before China backtracked on commitments in early May, prompting Trump to proceed with a long-threatened tariff hike to 25 per cent on a $200 billion list of Chinese imports.

Beijing had cut out of that text commitments to make changes to its laws reflecting reform pledges, arguing that this would violate its national sovereignty.

Lighthizer has insisted on legal changes to make it more likely that Chinese reform pledges will be carried out.

Finding a way around this issue is paramount for talks. Beyond that, there are many other difficult issues to resolve, including the structure of an enforcement mechanism designed to hold the two sides to their pledges.

US demands for curbs to provincial and local subsidies for Chinese state companies, access to China's cloud computing market, agricultural biotech approvals and the ultimate size of China's purchases of agricultural products are all divisive issues for the two sides.

Claire Reade, a former China trade negotiator at USTR who is now a Washington-based trade lawyer with the firm Arnold and Porter, said there was room on both sides to get a deal.

"It's a question of political will and there are ways to manoeuvre around the current red flags that have been put in the ground," Reade said. "Both President Xi and President Trump have to come out of this saying they stood strong, and they in-effect got a win."

One way for China to avoid the appearance of giving in to US demands is to take some legal steps on key issues before the deal is agreed. That way they can say they’re doing it on their terms, she added.

The United States and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed.

The United States and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed. After meeting with Chinese President Xi Jinping in Japan just in late June, US President Donald Trump agreed to suspend a new round of tariffs on $300 billion worth of imported Chinese consumer goods while the two sides resumed negotiations. Trump said then that China would restart large purchases of US agricultural commodities, and the United States would ease some export restrictions on Chinese telecom equipment giant Huawei Technologies. But sources familiar with the talks and China trade watchers in Washington say the summit did little to clear the path for top negotiators to resolve an impasse that caused trade deal talks to break down in early May. A US official said last week the discussions were expected to resume with a phone call between US Trade Representative Robert Lighthizer, Chinese Vice Premier Liu He and Treasury Secretary Steven Mnuchin. A USTR spokesman said the call was expected this week, but gave no further details. The United States is demanding that China make sweeping policy changes to better protect American intellectual property, end the forced transfer and theft of trade secrets and curb massive state industrial subsidies. At stake, US officials say, is the dominance of the high-tech industries of the future, from artificial intelligence to aerospace. "We've had a change in atmospherics," said Derek Scissors, a China expert at the American Enterprise Institute, a business-oriented Washington think tank. "While this is great for markets, the administration has not said one specific thing about how we're unstuck." Scissors, who has at times consulted with Trump administration officials, said that both sides got what they wanted out of the summit -- a lowering of the temperature and the avoidance of new tariffs that would have been painful for both sides. Watch: US-China trade friction hurting world economic chain: Chinese scholars × "The pressure for one side to give in to the other is diffused right now. I expect this to drag out for months," Scissors added. No firm commitments Washington and Beijing appear to have different ideas of what the two leaders agreed in Osaka. Three sources familiar with the state of negotiations say that the Chinese side did not make firm commitments to immediately purchase agricultural commodities. In pics: Why China is afraid of US Abrams tanks to be delivered to Taiwan One of the sources said Trump raised the issue of agricultural purchases twice during the meeting, but Xi only agreed to consider purchases in the context of a broader final agreement. Other than a small purchase of American rice by a private Chinese firm, no purchases have materialized. Chinese officials and state media accounts in the past week have emphasized that any deal, including agricultural purchases, is dependent on the removal of US tariffs. "The Chinese have been clear they didn't promise anything," said one source familiar with the talks. "The idea they would give up their main leverage before getting anything doesn’t make sense. I could see them buying some pork and buying some soybeans, but it's still going to be pennies." Trump administration officials have also downplayed the extent of pledges to allow Huawei to purchase US technology products, with White House trade adviser Peter Navarro saying that only "lower-tech" US semiconductors could be made available for sale to the company. [nL2N243133]. Reuters reported last week that the Commerce Department's export control enforcement staff was told to continue to treat Huawei as a blacklisted entity as the department considers requests for licenses to US firms to sell products and services to Huawei [nL2N24402Y] Chinese officials point out that they only got the United States to concede on Huawei at the Osaka talks, rather than on their other demand, which was removing the existing tariffs. So the focus on the upcoming talks will be the scrapping on the tariffs, they say. A second source said that US tariffs on $250 billion worth of Chinese goods and Chinese tariffs on $160 billion worth of US goods could wind up being "the new normal." One Chinese official familiar with the situation said that trade talks would be re-started very quickly, but that there was a "fairly large gap" in the core demands of both countries and it would be a challenge to reach consensus on the toughest issues. "The negotiating environment is even more severe," the official said. Another official said China remained concerned about the presence of hawks in the US team, such as Trump advisor Peter Navarro. "There are bullies there," the official said. The officials spoke to Reuters on condition of anonymity. China's foreign ministry cited Xi as telling Trump at Osaka that "on issues concerning China's sovereignty and dignity, China must safeguard its core interests". A senior Beijing-based Asia diplomat said there would be pressure on China's leadership not to give in to the United States and for any outcomes to seen as equal and balanced. "A trade deal cannot be portrayed as a victory for the United States," the diplomat said, citing conversations with Chinese officials. Which text? There has been no indication the two sides will resume negotiations using a text that had been largely agreed before China backtracked on commitments in early May, prompting Trump to proceed with a long-threatened tariff hike to 25 per cent on a $200 billion list of Chinese imports. Beijing had cut out of that text commitments to make changes to its laws reflecting reform pledges, arguing that this would violate its national sovereignty. Lighthizer has insisted on legal changes to make it more likely that Chinese reform pledges will be carried out. Finding a way around this issue is paramount for talks. Beyond that, there are many other difficult issues to resolve, including the structure of an enforcement mechanism designed to hold the two sides to their pledges. US demands for curbs to provincial and local subsidies for Chinese state companies, access to China's cloud computing market, agricultural biotech approvals and the ultimate size of China's purchases of agricultural products are all divisive issues for the two sides. Claire Reade, a former China trade negotiator at USTR who is now a Washington-based trade lawyer with the firm Arnold and Porter, said there was room on both sides to get a deal. "It's a question of political will and there are ways to manoeuvre around the current red flags that have been put in the ground," Reade said. "Both President Xi and President Trump have to come out of this saying they stood strong, and they in-effect got a win." One way for China to avoid the appearance of giving in to US demands is to take some legal steps on key issues before the deal is agreed. That way they can say they’re doing it on their terms, she added.

United States, China to relaunch talks with little changed since deal fell apart

A White House trade adviser and a leading Republican senator said on Wednesday that a US plan to impose tariffs on Mexican goods might not go into effect, offering hope for Mexico and American businesses concerned about economic damage from a new front in President Donald Trump's trade wars.

Adviser Peter Navarro told CNN that Trump's <a href="https://www.wionews.com/world/trump-says-republican-would-be-foolish-to-block-mexican-tariffs-224360">threatened tariffs</a>, due to come into force next week, might not be needed because the United States now has "the Mexicans' attention" on stemming illegal immigration.

Frustrated by the lack of progress on a signature issue from his 2016 election campaign, Trump unexpectedly told Mexico last week to take a harder line on curbing illegal immigration or face 5% tariffs on all its exports to the United States, rising to as much as 25% later in the year.

Mexican officials will seek to persuade the White House in talks hosted by US Vice President Mike Pence on Wednesday that their government has done enough to <a href="https://www.wionews.com/world/state-elections-set-to-offer-relief-for-harried-mexican-president-223673">stem immigration</a> and avoid looming tariffs.

Speaking in Ireland, Trump said he thinks Mexico wants to make a deal to avert the tariffs but that if it does not take steps to control the flow of migrants the duties will go into effect.

"Mexico can stop it. They have to stop it, otherwise we just won't be able to do business. It's a very simple thing. And I think they will stop it. I think they want to do something. I think they want to make a deal, and they sent their top people to try and do it," Trump said.

Mexican President Andres Manuel Lopez Obrador said he was optimistic the talks can end in an agreement.

"We believe that these tariffs may not have to go into effect precisely because we have the Mexicans' attention," Navarro said.

Trump has faced significant resistance within his own Republican Party over the threatened tariffs, with many lawmakers concerned about the potential impact on cross-border trade and on US businesses and consumers.

Chuck Grassley, the Republican chairman of the US Senate Finance Committee, predicted that the United States and Mexico would strike a deal to avert the tariffs.

Mexican officials will offer a "long list of things" to avoid the duties in talks this week with their American counterparts, Grassley told reporters, adding that he thinks a possible deal could be announced on Thursday night.

Grassley represents the farming state of Iowa, which exports pork and other agriculture products to Mexico and might be hit by Mexican retaliation in a prolonged trade dispute.

Trump, who in Britain on a state visit this week, said in London on Tuesday it was likely that the first wave of tariffs, set for June 10, would go ahead.

Pence is looking for a comprehensive suite of proposals from the visiting officials about stopping the flow of migrants from Central America, a White House official said.

"Trade and all other aspects of our relationship are critically important, but national security comes first and the White House is dead serious about moving forward with tariffs if nothing can be done to stem the flow of migrants," the official said, speaking on condition of anonymity.

Some Republicans have told the White House not to count on the same level of support within the party that it received earlier this year when Trump declared a national emergency to divert funds to build barriers at the border. Democrats opposed that move.

The proposed tariffs have also been criticized by the US Chamber of Commerce and industry groups due to concerns about increased costs for US businesses and consumers of imported Mexican goods from cars and auto parts to beer and fruit.

Pressure at the border&nbsp;

US authorities at the southern border with Mexico have faced in recent years an increase in mostly Central American families and unaccompanied minors seeking asylum to escape criminal violence in their home countries.

Mexican Foreign Secretary Marcelo Ebrard will attend the talks on tariffs and immigration, set to take place in Washington at 3 p.m. (1900 GMT) on Wednesday. Ebrard has said the threatened tariffs would be devastating to Mexico's economy and would not stop the waves of migrants from crossing the US border.

The Mexican delegation is expected to try to show the White House that authorities are taking steps to stem the flow of migrants, with Mexico detaining double the number each day than it was a year ago.

But leftist Lopez Obrador has said he wants to persuade Washington to help tackle the causes of migration by investing in Central America to create jobs and speed up economic development.

Mexico's peso rose 0.2% on Wednesday ahead of the meeting on hopes of a resolution to the US-Mexican trade friction.

The Mexican economy will likely slip into recession this year if Trump follows through on his tariff threat, a Reuters poll of market analysts showed.

As a proportion of Mexico's total US exports in 2018 - $347 billion, according to US data - a 5% tariff implies costs of roughly $1 billion between June 10 and 30. If the tariffs rise further, that cost, too, would surge.

An industry source who has met with the Mexican delegation said that ideas being floated to solve the dispute are more border controls and joint security exercises on Mexico's southern border with Guatemala, which Central American migrants pass through on their way to the United States.

"It is a resource issue at the end of the day in part and it is also a sovereignty issue for the Mexicans, how much they are prepared to let the Americans come in and manage some of these border issues with them," the source said.

The tariff threat has also raised questions over the future of a three-way deal with Canada to replace the North American Free Trade Agreement. US House of Representatives Speaker Nancy Pelosi said Democratic lawmakers have made clear to Mexican officials they wanted to move forward with the new trade pact.

"The meeting that we had was very respectful, made clear that we're trying to go to 'yes' on US, Mexico, Canada trade agreement," Pelosi, the top Democrat in the US Congress, told reporters of the lawmakers' meeting with Mexican representatives on Tuesday.

A White House trade adviser and a leading Republican senator said on Wednesday that a US plan to impose tariffs on Mexican goods might not go into effect, offering hope for Mexico and American businesses concerned about economic damage from a new front in President Donald Trump's trade wars.

A White House trade adviser and a leading Republican senator said on Wednesday that a US plan to impose tariffs on Mexican goods might not go into effect, offering hope for Mexico and American businesses concerned about economic damage from a new front in President Donald Trump's trade wars. Adviser Peter Navarro told CNN that Trump's threatened tariffs, due to come into force next week, might not be needed because the United States now has "the Mexicans' attention" on stemming illegal immigration. Frustrated by the lack of progress on a signature issue from his 2016 election campaign, Trump unexpectedly told Mexico last week to take a harder line on curbing illegal immigration or face 5% tariffs on all its exports to the United States, rising to as much as 25% later in the year. Mexican officials will seek to persuade the White House in talks hosted by US Vice President Mike Pence on Wednesday that their government has done enough to stem immigration and avoid looming tariffs. Speaking in Ireland, Trump said he thinks Mexico wants to make a deal to avert the tariffs but that if it does not take steps to control the flow of migrants the duties will go into effect. "Mexico can stop it. They have to stop it, otherwise we just won't be able to do business. It's a very simple thing. And I think they will stop it. I think they want to do something. I think they want to make a deal, and they sent their top people to try and do it," Trump said. Mexican President Andres Manuel Lopez Obrador said he was optimistic the talks can end in an agreement. "We believe that these tariffs may not have to go into effect precisely because we have the Mexicans' attention," Navarro said. Trump has faced significant resistance within his own Republican Party over the threatened tariffs, with many lawmakers concerned about the potential impact on cross-border trade and on US businesses and consumers. Chuck Grassley, the Republican chairman of the US Senate Finance Committee, predicted that the United States and Mexico would strike a deal to avert the tariffs. Mexican officials will offer a "long list of things" to avoid the duties in talks this week with their American counterparts, Grassley told reporters, adding that he thinks a possible deal could be announced on Thursday night. Grassley represents the farming state of Iowa, which exports pork and other agriculture products to Mexico and might be hit by Mexican retaliation in a prolonged trade dispute. Trump, who in Britain on a state visit this week, said in London on Tuesday it was likely that the first wave of tariffs, set for June 10, would go ahead. Pence is looking for a comprehensive suite of proposals from the visiting officials about stopping the flow of migrants from Central America, a White House official said. "Trade and all other aspects of our relationship are critically important, but national security comes first and the White House is dead serious about moving forward with tariffs if nothing can be done to stem the flow of migrants," the official said, speaking on condition of anonymity. Some Republicans have told the White House not to count on the same level of support within the party that it received earlier this year when Trump declared a national emergency to divert funds to build barriers at the border. Democrats opposed that move. The proposed tariffs have also been criticized by the US Chamber of Commerce and industry groups due to concerns about increased costs for US businesses and consumers of imported Mexican goods from cars and auto parts to beer and fruit. Pressure at the border US authorities at the southern border with Mexico have faced in recent years an increase in mostly Central American families and unaccompanied minors seeking asylum to escape criminal violence in their home countries. Mexican Foreign Secretary Marcelo Ebrard will attend the talks on tariffs and immigration, set to take place in Washington at 3 p.m. (1900 GMT) on Wednesday. Ebrard has said the threatened tariffs would be devastating to Mexico's economy and would not stop the waves of migrants from crossing the US border. The Mexican delegation is expected to try to show the White House that authorities are taking steps to stem the flow of migrants, with Mexico detaining double the number each day than it was a year ago. But leftist Lopez Obrador has said he wants to persuade Washington to help tackle the causes of migration by investing in Central America to create jobs and speed up economic development. Mexico's peso rose 0.2% on Wednesday ahead of the meeting on hopes of a resolution to the US-Mexican trade friction. The Mexican economy will likely slip into recession this year if Trump follows through on his tariff threat, a Reuters poll of market analysts showed. As a proportion of Mexico's total US exports in 2018 - $347 billion, according to US data - a 5% tariff implies costs of roughly $1 billion between June 10 and 30. If the tariffs rise further, that cost, too, would surge. An industry source who has met with the Mexican delegation said that ideas being floated to solve the dispute are more border controls and joint security exercises on Mexico's southern border with Guatemala, which Central American migrants pass through on their way to the United States. "It is a resource issue at the end of the day in part and it is also a sovereignty issue for the Mexicans, how much they are prepared to let the Americans come in and manage some of these border issues with them," the source said. The tariff threat has also raised questions over the future of a three-way deal with Canada to replace the North American Free Trade Agreement. US House of Representatives Speaker Nancy Pelosi said Democratic lawmakers have made clear to Mexican officials they wanted to move forward with the new trade pact. "The meeting that we had was very respectful, made clear that we're trying to go to 'yes' on US, Mexico, Canada trade agreement," Pelosi, the top Democrat in the US Congress, told reporters of the lawmakers' meeting with Mexican representatives on Tuesday.

Trump adviser, influential senator cast doubt on Mexico tariffs

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White House adviser says US-China trade deal soon

United States, China to relaunch talks with little changed since deal fell apart

Trump adviser, influential senator cast doubt on Mexico tariffs