US President Donald Trump said on Wednesday a<a href="https://www.wionews.com/world/trump-team-has-no-plan-to-go-to-china-for-trade-talks-official-202115"> trade deal with Beijing </a>is coming along nicely, with US trade negotiators going to China next week for another round of talks.

"The deal is coming along nicely," he said to reporters at the White House. Trump said top US negotiators are going to China this weekend "to further the deal."

When asked about lifting tariffs on China, Trump said, "We’re not talking about removing them. We're talking about leaving them for a substantial period of time because we have to make sure that if we do the deal" China abides by it. He did not elaborate.

US&nbsp;Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin plan to travel to China next week for another round of trade talks, a Trump administration official said on Tuesday.

US President Donald Trump said on Wednesday a trade deal with Beijing is coming along nicely, with US trade negotiators going to China next week for another round of talks.

US President Donald Trump said on Wednesday a trade deal with Beijing is coming along nicely, with US trade negotiators going to China next week for another round of talks. "The deal is coming along nicely," he said to reporters at the White House. Trump said top US negotiators are going to China this weekend "to further the deal." When asked about lifting tariffs on China, Trump said, "We’re not talking about removing them. We're talking about leaving them for a substantial period of time because we have to make sure that if we do the deal" China abides by it. He did not elaborate. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin plan to travel to China next week for another round of trade talks, a Trump administration official said on Tuesday.

Trump says trade deal 'coming along nicely' with China

The United States is not in a rush to enter into a <a href="https://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043">trade deal </a>with China, the negotiations for which has been undergoing since December last year, US President Donald Trump said.

At the same time, talks with the Chinese on a bilateral trade deal has been going on quite well, Trump said, amid reports that Chinese President Xi Jinping has postponed his trip to the US president's Mar-a-Lago resort in Florida later this month.

"I think things are going along very well. We'll just see what the date is. I'm in no rush. I want the deal to be right, much more importantly. Somebody said I'm in a rush. I'm not in a rush at all," Trump told reporters at the White House.

"Right now, we're getting billions and billions of dollars of tariffs paid into our coffers. I am not in a rush whatsoever. It's got to be the right deal, and it's got to be a good deal for us. And if it's not, we're not going to make that deal. But I will say that deal is going along very nicely," Trump said.

Responding to a question, Trump said his Chinese counterpart does not end up in what he did in Hanoi last month when he walked out of his summit meeting with North Korean leader Kim Jong-un because the deal on the table was not in the best interest of the US.

"I think President Xi saw that I'm somebody that believes in walking when a deal is not done. And, you know, there's always a chance it could happen, and he probably wouldn't want that. That could be a reason," Trump said when asked about the cancellation of his proposed summit with Xi in Mar-a-Lago.

"But we can do it either way. We can have the deal completed and come and sign, or we can get the deal almost completed and negotiate some of the final points. I would prefer that, but it doesn't matter that much,"&nbsp;he said.

Trump said the US economy is doing very good, but that is not the case with China.

"Our country is doing great. China would like to make a deal and we'd like to make a deal. We'll see. We have a very good relationship. I have a very good relationship with President Xi. We're going to see what happens,"&nbsp;he said.

"But it's an exciting time in terms of trade. We just made a deal with Mexico, Canada. We just made a deal with South Korea. We have other deals that we have cooking,"he said.

Trump reiterated the US was being taken advantage of by everybody.

"What was happening to our country on trade was a horrible thing; that this wasn't done years ago. And I'm not talking about the Obama administration. I'm talking about that and plenty of other administrations before it. That they could have allowed this to happen -- we lost, over the last number of years, almost USD 800 billion a year on trade. Who's making these deals"&nbsp;he said.

"So we're making great deals or we're not going to make them at all. We're going to go tariffs,"said the US President.&nbsp;

The United States is not in a rush to enter into a trade deal with China, the negotiations for which has been undergoing since December last year, US President Donald Trump said.

The United States is not in a rush to enter into a trade deal with China, the negotiations for which has been undergoing since December last year, US President Donald Trump said. At the same time, talks with the Chinese on a bilateral trade deal has been going on quite well, Trump said, amid reports that Chinese President Xi Jinping has postponed his trip to the US president's Mar-a-Lago resort in Florida later this month. "I think things are going along very well. We'll just see what the date is. I'm in no rush. I want the deal to be right, much more importantly. Somebody said I'm in a rush. I'm not in a rush at all," Trump told reporters at the White House. "Right now, we're getting billions and billions of dollars of tariffs paid into our coffers. I am not in a rush whatsoever. It's got to be the right deal, and it's got to be a good deal for us. And if it's not, we're not going to make that deal. But I will say that deal is going along very nicely," Trump said. Responding to a question, Trump said his Chinese counterpart does not end up in what he did in Hanoi last month when he walked out of his summit meeting with North Korean leader Kim Jong-un because the deal on the table was not in the best interest of the US. "I think President Xi saw that I'm somebody that believes in walking when a deal is not done. And, you know, there's always a chance it could happen, and he probably wouldn't want that. That could be a reason," Trump said when asked about the cancellation of his proposed summit with Xi in Mar-a-Lago. "But we can do it either way. We can have the deal completed and come and sign, or we can get the deal almost completed and negotiate some of the final points. I would prefer that, but it doesn't matter that much," he said. Trump said the US economy is doing very good, but that is not the case with China. "Our country is doing great. China would like to make a deal and we'd like to make a deal. We'll see. We have a very good relationship. I have a very good relationship with President Xi. We're going to see what happens," he said. "But it's an exciting time in terms of trade. We just made a deal with Mexico, Canada. We just made a deal with South Korea. We have other deals that we have cooking,"he said. Trump reiterated the US was being taken advantage of by everybody. "What was happening to our country on trade was a horrible thing; that this wasn't done years ago. And I'm not talking about the Obama administration. I'm talking about that and plenty of other administrations before it. That they could have allowed this to happen -- we lost, over the last number of years, almost USD 800 billion a year on trade. Who's making these deals" he said. "So we're making great deals or we're not going to make them at all. We're going to go tariffs,"said the US President.

Not rushing to have trade deal with China: Trump

China and the United States are still working day and night to achieve a trade deal that matches the interests of both sides and the hopes of the world, including eliminating tit-for-tat tariffs, a senior Chinese official said on Saturday.

Chinese Vice Commerce Minister Wang Shouwen said he was optimistic about negotiations with Washington, but added any trade mechanism achieved must be equal and fair.

The governments of the world's two largest economies have been locked in a tariff battle for months as Washington presses Beijing to address long-standing concerns over Chinese practices and policies around industrial subsidies, technology transfers, market access and intellectual property rights.

Advances in talks drove the White House to indefinitely delay hikes in tariffs on $200 billion worth of Chinese imports that were set to kick in on March 2.

Wang, speaking at a news conference on the sidelines of China's ongoing annual meeting of parliament, said slapping tariffs on each other was bad for workers, farmers, exporters and manufacturers.

"It hurts investor confidence and delays corporate investment decisions," said Wang, who has been deeply involved in the trade talks with the United States.

"Now, the economic and trade teams of the two sides are making full efforts to communicate and negotiate in order to reach an agreement in line with the principles and directions decided by the two heads of states," he added.

"That is to remove all the tariffs imposed on each other so that bilateral trade relations between China and the United States can return to normal."The trade talks have seen senior officials shuttling backwards and forwards between Beijing and Washington.

Giving rare details into the talks, Wang said the two countries had been making extra effort to find areas in common. During the talks Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer enjoyed take out food, he said.

"Vice Premier Liu had a hamburger, and Lighthizer had eggplant and chicken," he added, describing a common Chinese dish.

"Throughout the negotiations, there was coffee and tea, but the two of them did not drink any coffee, did not drink any tea. They both drank hot boiled water. This is to find common ground."

It is unclear when or where senior negotiators from both sides will next meet.

Trump administration officials have not made any new plans to send a team to China for face-to-face trade talks though there is much work left to be done to reach a deal, White House trade adviser Clete Willems said on Friday.

China and the United States are still working day and night to achieve a trade deal that matches the interests of both sides and the hopes of the world, including eliminating tit-for-tat tariffs, a senior Chinese official said on Saturday.

China and the United States are still working day and night to achieve a trade deal that matches the interests of both sides and the hopes of the world, including eliminating tit-for-tat tariffs, a senior Chinese official said on Saturday. Chinese Vice Commerce Minister Wang Shouwen said he was optimistic about negotiations with Washington, but added any trade mechanism achieved must be equal and fair. The governments of the world's two largest economies have been locked in a tariff battle for months as Washington presses Beijing to address long-standing concerns over Chinese practices and policies around industrial subsidies, technology transfers, market access and intellectual property rights. Advances in talks drove the White House to indefinitely delay hikes in tariffs on $200 billion worth of Chinese imports that were set to kick in on March 2. Wang, speaking at a news conference on the sidelines of China's ongoing annual meeting of parliament, said slapping tariffs on each other was bad for workers, farmers, exporters and manufacturers. "It hurts investor confidence and delays corporate investment decisions," said Wang, who has been deeply involved in the trade talks with the United States. "Now, the economic and trade teams of the two sides are making full efforts to communicate and negotiate in order to reach an agreement in line with the principles and directions decided by the two heads of states," he added. "That is to remove all the tariffs imposed on each other so that bilateral trade relations between China and the United States can return to normal."The trade talks have seen senior officials shuttling backwards and forwards between Beijing and Washington. Giving rare details into the talks, Wang said the two countries had been making extra effort to find areas in common. During the talks Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer enjoyed take out food, he said. "Vice Premier Liu had a hamburger, and Lighthizer had eggplant and chicken," he added, describing a common Chinese dish. "Throughout the negotiations, there was coffee and tea, but the two of them did not drink any coffee, did not drink any tea. They both drank hot boiled water. This is to find common ground." It is unclear when or where senior negotiators from both sides will next meet. Trump administration officials have not made any new plans to send a team to China for face-to-face trade talks though there is much work left to be done to reach a deal, White House trade adviser Clete Willems said on Friday.

China says working with US day and night to get trade deal

US-China trade talks have been "very difficult and taxing" and negotiators still have "lots left to do", but breakthroughs have been made in some areas, China's commerce minister said Tuesday.

The comments as President Donald Trump has voiced confidence that he could soon sign a deal with President Xi Jinping to end a trade war that led to bruising tit-for-tat tariffs on goods from each country.

Recounting top economic official Liu He's recent trip to Washington for trade talks, commerce minister Zhong Shan said the "negotiation process was very difficult and taxing".

The content under discussion was very hard, Zhong stressed, "requiring our team to work overtime, day and night".

"Two days of negotiations had been agreed to, and then two days were added, and this was still very tense," Zhong told reporters on the sidelines of the opening session of the National People's Congress.

"The bilateral talks have been highly effective -- through 90 days of talks the two sides have achieved step by step, important results and breakthroughs in some areas," he said.

"Right now both teams are still negotiating because there is still lots left to do," Zhong said.

To reach an agreement "both sides need to walk towards each other and work hard together", he said.

The head of the China Banking Regulatory Commission said substantial breakthroughs had been reached in six areas, including technology transfer, intellectual property protection, non-tariff barriers, agricultural, services and exchange rates, according to local news site The Paper.&nbsp;

"This progress is substantial. I think it will be further expanded. There is no doubt about it," banking regulator Guo Shuqing said, according to The Paper.

Trump has for years railed against China's unfair trade practices, singling his ire on what he calls deliberate devaluation of its currency, the renminbi, also called the yuan.

"Some officials of the US government, including President Trump, accuse China of manipulating the exchange rate and promoting the devaluation of the renminbi to gain a competitive advantage," said Guo.

"There is no such thing, and everyone knows this," Guo said, adding it would be easier to reach a consensus on the exchange rate in future negotiations.

"It is certain that in the opening of the financial sector, China and the US are fully capable of reaching an agreement," he said.

US-China trade talks have been "very difficult and taxing" and negotiators still have "lots left to do", but breakthroughs have been made in some areas, China's commerce minister said Tuesday.

US-China trade talks have been "very difficult and taxing" and negotiators still have "lots left to do", but breakthroughs have been made in some areas, China's commerce minister said Tuesday. The comments as President Donald Trump has voiced confidence that he could soon sign a deal with President Xi Jinping to end a trade war that led to bruising tit-for-tat tariffs on goods from each country. Recounting top economic official Liu He's recent trip to Washington for trade talks, commerce minister Zhong Shan said the "negotiation process was very difficult and taxing". The content under discussion was very hard, Zhong stressed, "requiring our team to work overtime, day and night". "Two days of negotiations had been agreed to, and then two days were added, and this was still very tense," Zhong told reporters on the sidelines of the opening session of the National People's Congress. "The bilateral talks have been highly effective -- through 90 days of talks the two sides have achieved step by step, important results and breakthroughs in some areas," he said. "Right now both teams are still negotiating because there is still lots left to do," Zhong said. To reach an agreement "both sides need to walk towards each other and work hard together", he said. The head of the China Banking Regulatory Commission said substantial breakthroughs had been reached in six areas, including technology transfer, intellectual property protection, non-tariff barriers, agricultural, services and exchange rates, according to local news site The Paper. "This progress is substantial. I think it will be further expanded. There is no doubt about it," banking regulator Guo Shuqing said, according to The Paper. Trump has for years railed against China's unfair trade practices, singling his ire on what he calls deliberate devaluation of its currency, the renminbi, also called the yuan. "Some officials of the US government, including President Trump, accuse China of manipulating the exchange rate and promoting the devaluation of the renminbi to gain a competitive advantage," said Guo. "There is no such thing, and everyone knows this," Guo said, adding it would be easier to reach a consensus on the exchange rate in future negotiations. "It is certain that in the opening of the financial sector, China and the US are fully capable of reaching an agreement," he said.

Teams are still negotiating because there is still lots left to do in US trade talks: China

By James L Anderson

The original March 1 deadline has passed as the United States and China hash out a trade deal amid deadlocked negotiations.

Any US-China trade deal likely falls short compared to what the Trans-Pacific Partnership (TPP) could have been.

Within current talks, Donald Trump’s administration is focused on greater access to subsidised Chinese industries and addressing intellectual property theft linked to alleged forced technology transfers to China. All of this has an impact on America’s economic competitiveness in the short term.

But is the US adequately managing long-term Chinese efforts to don the mantle of global leader?

On the third day of his administration in 2017, Trump honoured a campaign promise by withdrawing from the contentious TPP. The historic 12-nation agreement was on track to cover roughly 40 per cent of the global economy.

Democrats and some Republicans in Congress, advocacy groups and some members of the American public flatly opposed the agreement. Concerns about the oversized influence of multinational corporations and the controversial investor-state dispute process was a feature of the public discourse.

Lost opportunity to rein in China?

But America may have missed a window of opportunity to curb China’s rise when it pulled out of the TPP.

Scholars Graham Allison and Kori Schake have grappled over if and how China can replace America as the world’s ranking power. Allison’s recent work, Destined for War, discusses the “windows of opportunity” the US can exploit to slow the pace of the rising power.

If history is any credible guide, the transition from Pax Britannica to Pax Americana may help US policy-makers and the public alike to understand the imperatives that surround China’s rise.

At the turn of the 20th century, America had unprecedented growth, thanks to Alfred Thayer Mahan’s vision of American sea power. And in the early years between the two World Wars, the United States, Great Britain and Japan headlined a global naval arms race.

In 1921, President Warren Harding held the Washington Naval Conference to disarm tensions among the competing navies in the Pacific. The naval powers agreed to discontinue their shipbuilding programmes and capped their naval fleets in the region. America also protected holdings in East Asia from the threat of a rising Japan.

The agreement was a triumph for America. But for Britain, their naval power was now at “eye level” with the United States.

The UK could not challenge the US

An overstretched Britain had neither the political will nor the financial ability to oppose America’s demands, aware that an arms race with the U.S. would likely bankrupt the British economy.

Pax Britannica, a symbol of Britain’s naval dominance, was forced to deliberately accommodate America’s rise. Britain’s reduced Pacific fleet and degraded Anglo-Japanese relations marked a turning point in America’s ascendancy.

It was not the first time Britain missed an opportunity to slow America’s rise. The American Civil War offered the chance, but Britain decided against joining on behalf of the Confederacy due to the issue of slavery. Schake also notes the Venezuela crisis of 1895 marked an early turning point in the leadership transition. This could have also been a window of opportunity.

How does this apply to current US-China relations? The “battleground” remains the same as in 1921; instead, China plans to supplant America to become the global leader.

Barack Obama’s administration crafted the TPP as a geopolitical instrument to halt China’s plans. It presented east and southeast Asian nations with an alternative to China’s coercive diplomacy in the region, such as in the case of Sri Lanka.

Reducing trade barriers had the potential to provide America with greater investment opportunities in the Asia-Pacific region. It could have weakened China’s diplomatic clout while also creating economic incentives for American investment in the area. It exploited a window of opportunity that targeted the source of China’s rise — its economy.

Pulling out of the TPP was not solely a product of the current administration —a Hillary Clinton administration may have withdrawn too. America’s anti-free trade mood reflects the priority of the public and lawmakers, which is to preserve US jobs and sovereignty.

Shifts in global power are afoot

But shifts in global power may be underway with implications beyond what happens on the home front. A tech Cold War is brewing, China’s plans for expansion under the Belt and Road initiative continue and South China Sea claims are an extension of China’s sovereignty.

The rebooted TPP, the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership, is likely to reduce barriers to trade and increase investment opportunities across Asia and Latin America for its member countries, including Canada.

But the agreement, without US representation, hardly lives up to America’s once-desired aim to create a trade zone in a large swath of East Asia that would isolate China while addressing the global power shifts underway. A renegotiated CPTPP, with American backing, may have even strengthened the Trump administration’s position in its current trade negotiations with the Chinese.

The UK was unable to prevent the last global leadership transition due to missed windows of opportunity and deliberate accommodation. An America that views China’s rise through a short-term bilateral lens runs the risk of accidentally accommodating Chinese efforts to replace America.

Taking advantage of a window of opportunity may be key to curbing the next global leadership transition —and the CPTPP may be the window that America needs before we are forced to accommodate to China’s interests. The US should reconsider joining the pact if it wants any shot at slowing China’s rise.

(James L Anderson is Visiting Fulbright Fellow at Centre for International and Defence Policy, Queen's University, Ontario)

(This article was originally published on the Conversation. Read the <a href="https://theconversation.com/a-u-s-china-trade-deal-does-not-slow-chinas-rise-111971">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

By James L Anderson The original March 1 deadline has passed as the United States and China hash out a trade deal amid deadlocked negotiations. Any US-China trade deal likely falls short compared to what the Trans-Pacific Partnership (TPP) could have been.

By James L Anderson The original March 1 deadline has passed as the United States and China hash out a trade deal amid deadlocked negotiations. Any US-China trade deal likely falls short compared to what the Trans-Pacific Partnership (TPP) could have been. Within current talks, Donald Trump’s administration is focused on greater access to subsidised Chinese industries and addressing intellectual property theft linked to alleged forced technology transfers to China. All of this has an impact on America’s economic competitiveness in the short term. But is the US adequately managing long-term Chinese efforts to don the mantle of global leader? On the third day of his administration in 2017, Trump honoured a campaign promise by withdrawing from the contentious TPP. The historic 12-nation agreement was on track to cover roughly 40 per cent of the global economy. Democrats and some Republicans in Congress, advocacy groups and some members of the American public flatly opposed the agreement. Concerns about the oversized influence of multinational corporations and the controversial investor-state dispute process was a feature of the public discourse. Lost opportunity to rein in China? But America may have missed a window of opportunity to curb China’s rise when it pulled out of the TPP. Scholars Graham Allison and Kori Schake have grappled over if and how China can replace America as the world’s ranking power. Allison’s recent work, Destined for War, discusses the “windows of opportunity” the US can exploit to slow the pace of the rising power. If history is any credible guide, the transition from Pax Britannica to Pax Americana may help US policy-makers and the public alike to understand the imperatives that surround China’s rise. At the turn of the 20th century, America had unprecedented growth, thanks to Alfred Thayer Mahan’s vision of American sea power. And in the early years between the two World Wars, the United States, Great Britain and Japan headlined a global naval arms race. In 1921, President Warren Harding held the Washington Naval Conference to disarm tensions among the competing navies in the Pacific. The naval powers agreed to discontinue their shipbuilding programmes and capped their naval fleets in the region. America also protected holdings in East Asia from the threat of a rising Japan. The agreement was a triumph for America. But for Britain, their naval power was now at “eye level” with the United States. The UK could not challenge the US An overstretched Britain had neither the political will nor the financial ability to oppose America’s demands, aware that an arms race with the U.S. would likely bankrupt the British economy. Pax Britannica, a symbol of Britain’s naval dominance, was forced to deliberately accommodate America’s rise. Britain’s reduced Pacific fleet and degraded Anglo-Japanese relations marked a turning point in America’s ascendancy. It was not the first time Britain missed an opportunity to slow America’s rise. The American Civil War offered the chance, but Britain decided against joining on behalf of the Confederacy due to the issue of slavery. Schake also notes the Venezuela crisis of 1895 marked an early turning point in the leadership transition. This could have also been a window of opportunity. How does this apply to current US-China relations? The “battleground” remains the same as in 1921; instead, China plans to supplant America to become the global leader. Barack Obama’s administration crafted the TPP as a geopolitical instrument to halt China’s plans. It presented east and southeast Asian nations with an alternative to China’s coercive diplomacy in the region, such as in the case of Sri Lanka. Reducing trade barriers had the potential to provide America with greater investment opportunities in the Asia-Pacific region. It could have weakened China’s diplomatic clout while also creating economic incentives for American investment in the area. It exploited a window of opportunity that targeted the source of China’s rise — its economy. Pulling out of the TPP was not solely a product of the current administration —a Hillary Clinton administration may have withdrawn too. America’s anti-free trade mood reflects the priority of the public and lawmakers, which is to preserve US jobs and sovereignty. Shifts in global power are afoot But shifts in global power may be underway with implications beyond what happens on the home front. A tech Cold War is brewing, China’s plans for expansion under the Belt and Road initiative continue and South China Sea claims are an extension of China’s sovereignty. The rebooted TPP, the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership, is likely to reduce barriers to trade and increase investment opportunities across Asia and Latin America for its member countries, including Canada. But the agreement, without US representation, hardly lives up to America’s once-desired aim to create a trade zone in a large swath of East Asia that would isolate China while addressing the global power shifts underway. A renegotiated CPTPP, with American backing, may have even strengthened the Trump administration’s position in its current trade negotiations with the Chinese. The UK was unable to prevent the last global leadership transition due to missed windows of opportunity and deliberate accommodation. An America that views China’s rise through a short-term bilateral lens runs the risk of accidentally accommodating Chinese efforts to replace America. Taking advantage of a window of opportunity may be key to curbing the next global leadership transition —and the CPTPP may be the window that America needs before we are forced to accommodate to China’s interests. The US should reconsider joining the pact if it wants any shot at slowing China’s rise. (James L Anderson is Visiting Fulbright Fellow at Centre for International and Defence Policy, Queen's University, Ontario) (This article was originally published on the Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

A US-China trade deal does not slow China’s rise

US President Donald Trump on Friday urged China to abolish tariffs on agricultural products imported from the United States -- adding that trade talks between the rival powers were going well.

"I have asked China to immediately remove all Tariffs on our agricultural products (including beef, pork, etc.)," the president wrote on Twitter.

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet" data-lang="en">
I have asked China to immediately remove all Tariffs on our agricultural products (including beef, pork, etc.) based on the fact that we are moving along nicely with Trade discussions....
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1101620175638614016?ref_src=twsrc%5Etfw">March 1, 2019</a></blockquote>
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He said his request was based on the fact that negotiations with China were "moving along nicely" -- and his delay last week of a planned tariff increase on Chinese exports.

"This is very important for our great farmers - and me!" he added.

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<blockquote class="twitter-tweet" data-lang="en">
....and I did not increase their second traunch of Tariffs to 25% on March 1st. This is very important for our great farmers - and me!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1101620176947236866?ref_src=twsrc%5Etfw">March 1, 2019</a></blockquote>
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After months of a trade war, the US and China agreed to a 90-day truce to work out their differences. It was scheduled to end Friday, but Trump eventually lifted the ultimatum to increase tariffs, satisfied by the progress made in several rounds of talks in Beijing and Washington.

Top White House economic official Larry Kudlow said Thursday the two countries were on the brink of a "historic" trade agreement. A meeting between Trump and his Chinese counterpart, Xi Jinping, is also expected this month.

After the latest round of talks in February, US Agriculture Secretary Sonny Perdue tweeted that China had committed to buying "an additional" 10 million metric tons of soybeans as a "show of good faith."

US farmers rely greatly on such trade with China: in 2017, around a third of US soybean production -- worth $14 billion -- was exported there, where it is used to feed pigs.&nbsp;

Those exports plummeted last summer when China imposed tariffs on US soybeans and other agricultural products.

Previously, in a gesture of goodwill at the start of the countries' truce, China in December resumed soybean purchases.

But Chinese tariffs had already hit America's farming regions hard -- areas where Trump has enjoyed plentiful support.

US President Donald Trump on Friday urged China to abolish tariffs on agricultural products imported from the United States -- adding that trade talks between the rival powers were going well.

US President Donald Trump on Friday urged China to abolish tariffs on agricultural products imported from the United States -- adding that trade talks between the rival powers were going well. "I have asked China to immediately remove all Tariffs on our agricultural products (including beef, pork, etc.)," the president wrote on Twitter. I have asked China to immediately remove all Tariffs on our agricultural products (including beef, pork, etc.) based on the fact that we are moving along nicely with Trade discussions.... — Donald J. Trump (@realDonaldTrump) March 1, 2019 × He said his request was based on the fact that negotiations with China were "moving along nicely" -- and his delay last week of a planned tariff increase on Chinese exports. "This is very important for our great farmers - and me!" he added. ....and I did not increase their second traunch of Tariffs to 25% on March 1st. This is very important for our great farmers - and me! — Donald J. Trump (@realDonaldTrump) March 1, 2019 × After months of a trade war, the US and China agreed to a 90-day truce to work out their differences. It was scheduled to end Friday, but Trump eventually lifted the ultimatum to increase tariffs, satisfied by the progress made in several rounds of talks in Beijing and Washington. Top White House economic official Larry Kudlow said Thursday the two countries were on the brink of a "historic" trade agreement. A meeting between Trump and his Chinese counterpart, Xi Jinping, is also expected this month. After the latest round of talks in February, US Agriculture Secretary Sonny Perdue tweeted that China had committed to buying "an additional" 10 million metric tons of soybeans as a "show of good faith." US farmers rely greatly on such trade with China: in 2017, around a third of US soybean production -- worth $14 billion -- was exported there, where it is used to feed pigs. Those exports plummeted last summer when China imposed tariffs on US soybeans and other agricultural products. Previously, in a gesture of goodwill at the start of the countries' truce, China in December resumed soybean purchases. But Chinese tariffs had already hit America's farming regions hard -- areas where Trump has enjoyed plentiful support.

Trump urges China to remove tariffs on US agricultural products

By Amitrajeet A Batabyal

Talks between the US and China to end the trade war appear to be in trouble with the March 2 deadline for a deal fast approaching.

In the ongoing trade talks between the US and China, a lack of trust – key to any successful negotiation – appears to be hobbling the ability to reach a deal. Hence it is not clear negotiators will be able to achieve anything substantive before they hit President Donald Trump’s deadline, triggering automatic tariff hikes if there’s no agreement.

As a trade economist, I believe the answer to the trust conundrum lies in learning from an international body the president disdains: the World Trade Organisation.

Empty words? 
 
From the American perspective, a key issue is that in the past the Chinese have made all sorts of promises to address US&nbsp;concerns that they later reneged on. Or, China has taken so long to act that when it finally did it made little difference.

Several examples of Chinese promises going unkept readily come to mind.

When China joined the World Trade Organization in 2001, it was given “developing country” status. This allowed China to levy high tariffs on imports from the US&nbsp;and Europe even as it benefited from low duties on its exports.

The understanding at that time was that as its economy grew, China would gradually adopt market-based economic principles and commit itself to the basic tenets of liberalised trade and globalisation. But this has not happened.

Sometime after China joined the WTO, the country imposed a 21 per cent to 30 per cent tariff on cars. It was only this past December, and under pressure because of the current trade talks, that the Chinese finally agreed to temporarily reduce the tariff to 15 per cent. In contrast, the corresponding US tariff on Chinese auto imports has long been 2.5 per cent.

More generally, also after becoming a WTO member, China promised to open up its banking, telecommunications and electronic payment processing sectors. But action in these areas has either been non-existent or half-hearted.

Even now, the Chinese telecommunications industry remains very much under government control, and the government has effectively precluded Facebook and Google from offering their services in China.

Concerns about the reliability of the Chinese are not limited to economic and technological matters. To see this, note that on a state visit to the US in 2015, President Xi Jinping promised not to militarize the artificial islands on disputed reefs that the Chinese were building in the South China Sea.

However, we now have clear evidence that he has done exactly what he promised he would not do.

Holding China’s feet to the fire

Given all this, I believe it would be rather naïve on the part of the US to agree to any Chinese promises in the current trade talks without also building a robust enforcement mechanism into any deal.

Indeed, the negotiators themselves seem to understand this, but difficulty finding a way to enforce any agreements – both past and present – is making it harder to come to a deal. And that’s where the WTO and its enforcement mechanisms come in.

For example, China agreed to just such a mechanism with its WTO ascension. This enforcement rule permitted a nation to automatically levy tariffs on certain Chinese goods and services if that country’s domestic market was hurt by those same exports. Unfortunately, like most WTO rules, this rule had a finite life and was allowed to lapse at the end in 2013. Even though this mechanism has been infrequently used, President Barack Obama took advantage of it with some success in 2009 to impose tariffs on Chinese-made tires that were harming US manufacturers.

If such an enforcement mechanism can be built into a trade deal, then the US would not have to plead its case before some international body before it retaliated against the Chinese. Instead, when confronted with one or more broken promises, it would have the legal right to act unilaterally to hold China accountable.

That said, since the current negotiations are between two sovereign nations, the key is to devise an enforcement mechanism that is agreeable to both the US and China. Only then will a resulting trade deal be self-enforcing.

Since the US and China are both members of the WTO, another but less potent enforcement mechanism would lie in utilising its dispute settlement mechanism to address any disagreements that may arise after a deal is reached. The US has had success in the past in using this WTO mechanism as well to hold China accountable.

A deal worth the paper it’s printed on

The venerable Chinese sage Sun Tzu once said that “in the midst of chaos, there is also the opportunity.”

The US now has an opportunity to conclude a meaningful trade deal with China that also has enforcement built into it. Therefore, the American negotiators ought to seize this opportunity and ensure a deal isn’t backed primarily by Chinese promises.

Otherwise, it won’t be the last time a US president fumes about unfair Chinese trading practices.

(By Amitrajeet A Batabyal is Arthur J. Gosnell Professor of Economics, Rochester Institute of Technology)

(This article was originally published on the Conversation. Read the <a href="https://theconversation.com/us-china-trade-talks-will-the-chinese-keep-promises-to-stop-bad-behavior-111900">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

 
&nbsp;

By Amitrajeet A Batabyal Talks between the US and China to end the trade war appear to be in trouble with the March 2 deadline for a deal fast approaching. In the ongoing trade talks between the US and China, a lack of trust – key to any successful negotiation – appears to be hobbling the ability to reach a deal.

By Amitrajeet A Batabyal Talks between the US and China to end the trade war appear to be in trouble with the March 2 deadline for a deal fast approaching. In the ongoing trade talks between the US and China, a lack of trust – key to any successful negotiation – appears to be hobbling the ability to reach a deal. Hence it is not clear negotiators will be able to achieve anything substantive before they hit President Donald Trump’s deadline, triggering automatic tariff hikes if there’s no agreement. As a trade economist, I believe the answer to the trust conundrum lies in learning from an international body the president disdains: the World Trade Organisation. Empty words? From the American perspective, a key issue is that in the past the Chinese have made all sorts of promises to address US concerns that they later reneged on. Or, China has taken so long to act that when it finally did it made little difference. Several examples of Chinese promises going unkept readily come to mind. When China joined the World Trade Organization in 2001, it was given “developing country” status. This allowed China to levy high tariffs on imports from the US and Europe even as it benefited from low duties on its exports. The understanding at that time was that as its economy grew, China would gradually adopt market-based economic principles and commit itself to the basic tenets of liberalised trade and globalisation. But this has not happened. Sometime after China joined the WTO, the country imposed a 21 per cent to 30 per cent tariff on cars. It was only this past December, and under pressure because of the current trade talks, that the Chinese finally agreed to temporarily reduce the tariff to 15 per cent. In contrast, the corresponding US tariff on Chinese auto imports has long been 2.5 per cent. More generally, also after becoming a WTO member, China promised to open up its banking, telecommunications and electronic payment processing sectors. But action in these areas has either been non-existent or half-hearted. Even now, the Chinese telecommunications industry remains very much under government control, and the government has effectively precluded Facebook and Google from offering their services in China. Concerns about the reliability of the Chinese are not limited to economic and technological matters. To see this, note that on a state visit to the US in 2015, President Xi Jinping promised not to militarize the artificial islands on disputed reefs that the Chinese were building in the South China Sea. However, we now have clear evidence that he has done exactly what he promised he would not do. Holding China’s feet to the fire Given all this, I believe it would be rather naïve on the part of the US to agree to any Chinese promises in the current trade talks without also building a robust enforcement mechanism into any deal. Indeed, the negotiators themselves seem to understand this, but difficulty finding a way to enforce any agreements – both past and present – is making it harder to come to a deal. And that’s where the WTO and its enforcement mechanisms come in. For example, China agreed to just such a mechanism with its WTO ascension. This enforcement rule permitted a nation to automatically levy tariffs on certain Chinese goods and services if that country’s domestic market was hurt by those same exports. Unfortunately, like most WTO rules, this rule had a finite life and was allowed to lapse at the end in 2013. Even though this mechanism has been infrequently used, President Barack Obama took advantage of it with some success in 2009 to impose tariffs on Chinese-made tires that were harming US manufacturers. If such an enforcement mechanism can be built into a trade deal, then the US would not have to plead its case before some international body before it retaliated against the Chinese. Instead, when confronted with one or more broken promises, it would have the legal right to act unilaterally to hold China accountable. That said, since the current negotiations are between two sovereign nations, the key is to devise an enforcement mechanism that is agreeable to both the US and China. Only then will a resulting trade deal be self-enforcing. Since the US and China are both members of the WTO, another but less potent enforcement mechanism would lie in utilising its dispute settlement mechanism to address any disagreements that may arise after a deal is reached. The US has had success in the past in using this WTO mechanism as well to hold China accountable. A deal worth the paper it’s printed on The venerable Chinese sage Sun Tzu once said that “in the midst of chaos, there is also the opportunity.” The US now has an opportunity to conclude a meaningful trade deal with China that also has enforcement built into it. Therefore, the American negotiators ought to seize this opportunity and ensure a deal isn’t backed primarily by Chinese promises. Otherwise, it won’t be the last time a US president fumes about unfair Chinese trading practices. (By Amitrajeet A Batabyal is Arthur J. Gosnell Professor of Economics, Rochester Institute of Technology) (This article was originally published on the Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

US-China trade conflict: Lack of trust hobbling the ability to reach a deal

One of <a href="http://www.wionews.com/world/if-huawei-is-co-located-with-american-systems-it-would-be-difficult-for-us-to-partner-pompeo-to-hungary-196791">Huawei</a>'s three rotating chairmen accused the United States of creating a geopolitical campaign against the <a href="http://www.wionews.com/world/china-calls-us-concerns-over-huawei-groundless-196926">Chinese company</a> to persuade other countries not to use its products, the official daily China Daily reported Friday.

Xu Zhijun criticized the US at a press conference in Shenzhen, accusing Washington of carrying out a "coordinated, tactical geopolitical campaign" against Huawei.

He also said that the current discussions around 5G technology - of which Huawei is one of the main promoters - revolve around politics and questioned the US’ motives.

"Some say that because these countries are using Huawei equipment, it makes it harder for US agencies to obtain these countries' data," Xu added.

His statements come after US Secretary of State Mike Pompeo made an Eastern European tour where he warned about the growing presence of Huawei in the region.

During his visit, Pompeo warned US allies about deploying the Chinese company's products, saying those that do so would make it difficult for the US to partner with.

Xu also said that Huawei will invest more than $2 billion over the next five years to improve the cybersecurity of its equipment, including rewriting code, as an additional step to increase the confidence of foreign firms.

At the end of last month, the US Department of Justice formally accused Huawei, two affiliated companies and its chief financial officer, Meng Wanzhou, of 13 counts of fraud and conspiracy to bypass sanctions on Iran.

Huawei has been the subject of constant scrutiny by the US government which has banned the company from installing its telecommunications equipment in important networks of the country over concerns that they can be used to spy on the US.

The governments of Australia and New Zealand have also banned the installation of Huawei’s 5G equipment, while Canada is reviewing its relationship with the firm and the UK has asked the company to fix problems that pose risks to the network.

Huawei, which is the world's largest manufacturer of telecommunications equipment and the second-largest smartphone maker, claimed that it posed no threat to US security and added that the company was operating independently of the government of China.

One of Huawei's three rotating chairmen accused the United States of creating a geopolitical campaign against the Chinese company to persuade other countries not to use its products, the official daily China Daily reported Friday.

One of Huawei's three rotating chairmen accused the United States of creating a geopolitical campaign against the Chinese company to persuade other countries not to use its products, the official daily China Daily reported Friday. Xu Zhijun criticized the US at a press conference in Shenzhen, accusing Washington of carrying out a "coordinated, tactical geopolitical campaign" against Huawei. He also said that the current discussions around 5G technology - of which Huawei is one of the main promoters - revolve around politics and questioned the US’ motives. "Some say that because these countries are using Huawei equipment, it makes it harder for US agencies to obtain these countries' data," Xu added. His statements come after US Secretary of State Mike Pompeo made an Eastern European tour where he warned about the growing presence of Huawei in the region. During his visit, Pompeo warned US allies about deploying the Chinese company's products, saying those that do so would make it difficult for the US to partner with. Xu also said that Huawei will invest more than $2 billion over the next five years to improve the cybersecurity of its equipment, including rewriting code, as an additional step to increase the confidence of foreign firms. At the end of last month, the US Department of Justice formally accused Huawei, two affiliated companies and its chief financial officer, Meng Wanzhou, of 13 counts of fraud and conspiracy to bypass sanctions on Iran. Huawei has been the subject of constant scrutiny by the US government which has banned the company from installing its telecommunications equipment in important networks of the country over concerns that they can be used to spy on the US. The governments of Australia and New Zealand have also banned the installation of Huawei’s 5G equipment, while Canada is reviewing its relationship with the firm and the UK has asked the company to fix problems that pose risks to the network. Huawei, which is the world's largest manufacturer of telecommunications equipment and the second-largest smartphone maker, claimed that it posed no threat to US security and added that the company was operating independently of the government of China.

Huawei accuses US of orchestrating geopolitical campaign against it

US Treasury Secretary Steven Mnuchin said talks with China went well on Wednesday, as the world's two largest economies try to iron out an agreement to resolve their trade dispute.

"So far, so good," he said when asked by reporters on how the meetings in Beijing went. He did not say who he met.

Mnuchin said earlier he hoped for "productive" trade meetings as the two countries seek to end a festering dispute that has seen both sides level tariffs at one other.

US tariffs on $200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if the two sides cannot reach a deal by a March 1 deadline, increasing pain and costs in sectors from consumer electronics to agriculture.

Mnuchin, asked by reporters as he left his Beijing hotel what his hopes were for the visit, said "productive meetings". He did not elaborate.

Mnuchin, along with US Trade Representative Robert Lighthizer, arrived in the Chinese capital on Tuesday.

US President Donald Trump said on Tuesday that he could let the deadline for a trade agreement "slide for a little while," but that he would prefer not to and expects to meet with Chinese President Xi Jinping to close the deal at some point.

Trump's advisers have previously described March 1 as a "hard deadline," but Trump told reporters that a delay was now possible.

He said in December that the 90-day truce could be extended, but that he could revert to tariffs if differences could not be resolved.

A growing number of US businesses and lawmakers have expressed hopes for a delay in the tariff increase while the two sides tackle the difficult US demands for major structural policy changes by China aimed at ending the forced transfer of American trade secrets, curbing Beijing's industrial subsidies and enforcing intellectual property rights.

Trump said last week he did not plan to meet with Xi before the March 1 deadline.

Mnuchin and Lighthizer are scheduled to hold talks on Thursday and Friday with Vice Premier Liu He, the top economic adviser to Xi.

The latest round of talks in Beijing kicked off on Monday with discussions among deputy-level officials to try to work out technical details, including a mechanism for enforcing any trade agreement.

China's Foreign Ministry referred questions on the talks to the Ministry of Commerce, which did not respond to a request for comment.

A round of talks at the end of January ended with some progress reported, but no deal, and US declarations that much more work was needed.

Dodge a bullet

James Green, a senior research fellow at Georgetown University, said he believed China was looking to secure a Xi-Trump meeting in the hope that it would make a near-term deal on tariffs far more likely.

"From their point of view, they would have dodged a bullet," Green, who was USTR's top official at the US embassy in Beijing until mid-2018, told Reuters by telephone.

But there is growing bipartisan concern in the United States about increasing state control of China's economy, military activity in the South China Sea, and security issues around its technology companies.

Even if the two sides could come to terms on tariffs, that might not mean an end to trade friction, Green added.

"I think that whatever we might get for an agreement, it will be a pause, because the US government is still going to move forward in the telecoms sector, on law enforcement and legal action, and on sanctions-related issues."

US Secretary of State Mike Pompeo cautioned allies on Monday against deploying equipment from Chinese telecoms giant Huawei Technologies on their soil, saying it would make it more difficult for Washington to "partner alongside them".

The United States and its Western allies believe Huawei's apparatus could be used for espionage, and see its expansion into central Europe as a way to gain a foothold in the European Union market.

Both the Chinese government and Huawei have dismissed these concerns.

US Treasury Secretary Steven Mnuchin said talks with China went well on Wednesday, as the world's two largest economies try to iron out an agreement to resolve their trade dispute.

US Treasury Secretary Steven Mnuchin said talks with China went well on Wednesday, as the world's two largest economies try to iron out an agreement to resolve their trade dispute. "So far, so good," he said when asked by reporters on how the meetings in Beijing went. He did not say who he met. Mnuchin said earlier he hoped for "productive" trade meetings as the two countries seek to end a festering dispute that has seen both sides level tariffs at one other. US tariffs on $200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if the two sides cannot reach a deal by a March 1 deadline, increasing pain and costs in sectors from consumer electronics to agriculture. Mnuchin, asked by reporters as he left his Beijing hotel what his hopes were for the visit, said "productive meetings". He did not elaborate. Mnuchin, along with US Trade Representative Robert Lighthizer, arrived in the Chinese capital on Tuesday. US President Donald Trump said on Tuesday that he could let the deadline for a trade agreement "slide for a little while," but that he would prefer not to and expects to meet with Chinese President Xi Jinping to close the deal at some point. Trump's advisers have previously described March 1 as a "hard deadline," but Trump told reporters that a delay was now possible. He said in December that the 90-day truce could be extended, but that he could revert to tariffs if differences could not be resolved. A growing number of US businesses and lawmakers have expressed hopes for a delay in the tariff increase while the two sides tackle the difficult US demands for major structural policy changes by China aimed at ending the forced transfer of American trade secrets, curbing Beijing's industrial subsidies and enforcing intellectual property rights. Trump said last week he did not plan to meet with Xi before the March 1 deadline. Mnuchin and Lighthizer are scheduled to hold talks on Thursday and Friday with Vice Premier Liu He, the top economic adviser to Xi. The latest round of talks in Beijing kicked off on Monday with discussions among deputy-level officials to try to work out technical details, including a mechanism for enforcing any trade agreement. China's Foreign Ministry referred questions on the talks to the Ministry of Commerce, which did not respond to a request for comment. A round of talks at the end of January ended with some progress reported, but no deal, and US declarations that much more work was needed. Dodge a bullet James Green, a senior research fellow at Georgetown University, said he believed China was looking to secure a Xi-Trump meeting in the hope that it would make a near-term deal on tariffs far more likely. "From their point of view, they would have dodged a bullet," Green, who was USTR's top official at the US embassy in Beijing until mid-2018, told Reuters by telephone. But there is growing bipartisan concern in the United States about increasing state control of China's economy, military activity in the South China Sea, and security issues around its technology companies. Even if the two sides could come to terms on tariffs, that might not mean an end to trade friction, Green added. "I think that whatever we might get for an agreement, it will be a pause, because the US government is still going to move forward in the telecoms sector, on law enforcement and legal action, and on sanctions-related issues." US Secretary of State Mike Pompeo cautioned allies on Monday against deploying equipment from Chinese telecoms giant Huawei Technologies on their soil, saying it would make it more difficult for Washington to "partner alongside them". The United States and its Western allies believe Huawei's apparatus could be used for espionage, and see its expansion into central Europe as a way to gain a foothold in the European Union market. Both the Chinese government and Huawei have dismissed these concerns.

'So far, so good,' Steven Mnuchin says of trade talks in China

US secretary of state Mike Pompeo during his visit to Hungary cautioned the government against <a href="http://www.wionews.com/world/italy-to-ban-huawei-from-its-5g-plans-report-195806">Chinese</a> and Russian influence.

Pompeo was particularly insistent on Hungry not allowing <a href="http://www.wionews.com/world/china-tells-canada-to-free-huawei-cfo-or-face-consequences-182513">Chinese telecom giant Huawei </a>access to 5G network.

"If that equipment is co-located where we have important American systems, it makes it more difficult for us to partner alongside them," Pompeo said.

"We want to make sure we identify (to) them the opportunities and the risks with using that equipment. And then they will get to make their decisions," he added.

Pompeo had dinner with Hungarian PM Viktor Orban as the two leaders agreed to further ties.

"We must not let Putin drive wedges between friends in NATO," Pompeo said, adding, "An authoritarian Russia will never be a friend to the freedom and sovereignty of smaller nations."

Pompeo said the United States had earlier pushed Hungary into the arms of "folks who didn't share our values" and vowed to "compete for positive influence in the region".

Pompeo announced plans for a defence cooperation agreement with Hungary but added that he had discussed "the dangers of allowing China to gain a bridgehead in Hungary" during his talks with foreign minister Peter Szijjarto.

Hungry is Russia's biggest ally in eastern Europe with the country dependent on its energy needs on the Putin regime but has indicated its interest to join hands with the Trump administration.

"When it comes to cooperation with Russia or cooperation with the People's Republic of China that does not harm us being reliable as a NATO ally," Hungry's foreign minister said.

Pompeo is on a visit to various countries including Poland and the Middle East

"Hungary's government and President Donald Trump's administration represent an identical, or very similar, approaches in both general political and numerous international political issues," he added.

Pompeo is on a visit to various countries including Poland and the Middle East to engage with the government as the Trump administration seeks to further ties with countries.

In Poland, the government is considering banning Huawei from participating in the development of 5G capabilities after arresting a Chinese employee of Huawei and a former Polish security official on spying.&nbsp; 
&nbsp;

US secretary of state Mike Pompeo during his visit to Hungary cautioned the government against Chinese and Russian influence. Pompeo was particularly insistent on Hungry not allowing Chinese telecom giant Huawei access to 5G network.

US secretary of state Mike Pompeo during his visit to Hungary cautioned the government against Chinese and Russian influence. Pompeo was particularly insistent on Hungry not allowing Chinese telecom giant Huawei access to 5G network. "If that equipment is co-located where we have important American systems, it makes it more difficult for us to partner alongside them," Pompeo said. "We want to make sure we identify (to) them the opportunities and the risks with using that equipment. And then they will get to make their decisions," he added. Pompeo had dinner with Hungarian PM Viktor Orban as the two leaders agreed to further ties. "We must not let Putin drive wedges between friends in NATO," Pompeo said, adding, "An authoritarian Russia will never be a friend to the freedom and sovereignty of smaller nations." Pompeo said the United States had earlier pushed Hungary into the arms of "folks who didn't share our values" and vowed to "compete for positive influence in the region". Pompeo announced plans for a defence cooperation agreement with Hungary but added that he had discussed "the dangers of allowing China to gain a bridgehead in Hungary" during his talks with foreign minister Peter Szijjarto. Hungry is Russia's biggest ally in eastern Europe with the country dependent on its energy needs on the Putin regime but has indicated its interest to join hands with the Trump administration. "When it comes to cooperation with Russia or cooperation with the People's Republic of China that does not harm us being reliable as a NATO ally," Hungry's foreign minister said. Pompeo is on a visit to various countries including Poland and the Middle East "Hungary's government and President Donald Trump's administration represent an identical, or very similar, approaches in both general political and numerous international political issues," he added. Pompeo is on a visit to various countries including Poland and the Middle East to engage with the government as the Trump administration seeks to further ties with countries. In Poland, the government is considering banning Huawei from participating in the development of 5G capabilities after arresting a Chinese employee of Huawei and a former Polish security official on spying.

If Huawei is co-located with American systems, it would be difficult for us to partner: Pompeo to Hungary

US&nbsp;negotiators are preparing to press China next week on longstanding demands that it reform how it treats American companies' intellectual property in order to seal a trade deal that could prevent tariffs from rising on Chinese imports.

A new round of trade talks begins in Beijing on Monday, after the most recent set of negotiations concluded in Washington last week without a deal and with the top US&nbsp;negotiator declaring that a lot more work needed to be done.

A White House official said on Friday that preparations were under way and the talks would continue to focus on pressing Beijing to make structural reforms.

The White House announced a timeframe for the Beijing talks in a statement. It said lower-level officials will kick off the meetings on Monday, led on the American side by Deputy US&nbsp;Trade Representative Jeffrey Gerrish.

Higher principal-level talks will take place Thursday and Friday with US&nbsp;Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

Lighthizer, named by Trump to spearhead the process after agreeing a 90-day truce in the trade war with Beijing, has been a strong proponent of pushing China to make such reforms and end what the United States views as unfair trade practices including stealing intellectual property and forcing US&nbsp;companies to share their technology with Chinese firms.

China has denied it engages in such practices.

"The United States is a great producer of technology, and innovation, and know-how, and trade secrets. And we have to operate in an environment where those things are protected," Lighthizer said last week after talks at the White House.

"I'm by no means predicting success; there is a lot of work that has to be done," he said.

The two sides are trying to hammer out a deal ahead of the March 1 deadline when US&nbsp;tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.

China's Commerce Ministry said in a statement on Saturday that the two countries would have a "further deep discussion on issues of mutual concern" on the basis of what they talked about at the last round of talks in Washington. It gave no details.

China's ambassador to the United States, Cui Tiankai, said in Michigan on Friday that a "zero-sum game" mindset was destructive to China-US&nbsp;ties, the state-run news agency Xinhua reported.

Chinese and US&nbsp;companies should compete as well as cooperate with each other, Cui said.

"The real story in business is not that black and white," the report quoted him as saying.

Trump said on Thursday he did not plan to meet with Chinese President Xi Jinping before that deadline, dampening hopes that a trade pact could be reached quickly.

"We are hearing the list of issues the two presidents will ultimately have to make decisions on is being narrowed, so that's an indication that things are being addressed. But we're also hearing that there's a lot of work to be done," said Erin Ennis, senior vice president of the US-China Business Council, who says she has spoken with officials in both the United States and China. "I don’t think either side is expecting a draft of something next week."

Another source who had been briefed on the talks said a lot of work also needed to be done on an enforcement mechanism for a potential deal.

"If there's some indication that they're making progress on subsidies, forced tech transfer and the constellation of issues there and an enforcement mechanism, that would be interesting. The word coming out of this last round was that there was very limited, measly progress on those issues," the source said.

Escalating tensions between the United States and China have cost both countries billions of dollars and roiled global financial markets.

If the negotiations do not progress sufficiently, the US&nbsp;officials said increased tariffs will take effect.

Washington could agree to extend the deadline without a deal if talks are progressing. Trump said last week he did not think the deadline would need to be extended, though he said a deal might not be on paper by then.

&nbsp;

US negotiators are preparing to press China next week on longstanding demands that it reform how it treats American companies' intellectual property in order to seal a trade deal that could prevent tariffs from rising on Chinese imports.

US negotiators are preparing to press China next week on longstanding demands that it reform how it treats American companies' intellectual property in order to seal a trade deal that could prevent tariffs from rising on Chinese imports. A new round of trade talks begins in Beijing on Monday, after the most recent set of negotiations concluded in Washington last week without a deal and with the top US negotiator declaring that a lot more work needed to be done. A White House official said on Friday that preparations were under way and the talks would continue to focus on pressing Beijing to make structural reforms. The White House announced a timeframe for the Beijing talks in a statement. It said lower-level officials will kick off the meetings on Monday, led on the American side by Deputy US Trade Representative Jeffrey Gerrish. Higher principal-level talks will take place Thursday and Friday with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. Lighthizer, named by Trump to spearhead the process after agreeing a 90-day truce in the trade war with Beijing, has been a strong proponent of pushing China to make such reforms and end what the United States views as unfair trade practices including stealing intellectual property and forcing US companies to share their technology with Chinese firms. China has denied it engages in such practices. "The United States is a great producer of technology, and innovation, and know-how, and trade secrets. And we have to operate in an environment where those things are protected," Lighthizer said last week after talks at the White House. "I'm by no means predicting success; there is a lot of work that has to be done," he said. The two sides are trying to hammer out a deal ahead of the March 1 deadline when US tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent. China's Commerce Ministry said in a statement on Saturday that the two countries would have a "further deep discussion on issues of mutual concern" on the basis of what they talked about at the last round of talks in Washington. It gave no details. China's ambassador to the United States, Cui Tiankai, said in Michigan on Friday that a "zero-sum game" mindset was destructive to China-US ties, the state-run news agency Xinhua reported. Chinese and US companies should compete as well as cooperate with each other, Cui said. "The real story in business is not that black and white," the report quoted him as saying. Trump said on Thursday he did not plan to meet with Chinese President Xi Jinping before that deadline, dampening hopes that a trade pact could be reached quickly. "We are hearing the list of issues the two presidents will ultimately have to make decisions on is being narrowed, so that's an indication that things are being addressed. But we're also hearing that there's a lot of work to be done," said Erin Ennis, senior vice president of the US-China Business Council, who says she has spoken with officials in both the United States and China. "I don’t think either side is expecting a draft of something next week." Another source who had been briefed on the talks said a lot of work also needed to be done on an enforcement mechanism for a potential deal. "If there's some indication that they're making progress on subsidies, forced tech transfer and the constellation of issues there and an enforcement mechanism, that would be interesting. The word coming out of this last round was that there was very limited, measly progress on those issues," the source said. Escalating tensions between the United States and China have cost both countries billions of dollars and roiled global financial markets. If the negotiations do not progress sufficiently, the US officials said increased tariffs will take effect. Washington could agree to extend the deadline without a deal if talks are progressing. Trump said last week he did not think the deadline would need to be extended, though he said a deal might not be on paper by then.

US-China trade talks resume next week, focus on intellectual property

President Donald Trump on Tuesday told Congress that <a href="http://www.wionews.com/world/nato-treated-us-unfairly-says-trump-during-state-of-the-union-address-195468">Washington's aggressive trade negotiations </a>with Beijing would mean an end to China's alleged "theft" of US jobs and wealth.

In his annual State of the Union address, <a href="http://www.wionews.com/world/the-proper-wall-never-got-built-i-will-get-it-built-says-trump-during-state-of-the-union-address-195465">Trump also called on China to make</a> the kind of far-reaching "structural" changes to industrial policy that analysts say Beijing is likely to resist.

The world's<a href="http://www.wionews.com/world/this-year-us-astronauts-will-go-back-to-space-in-american-rockets-says-trump-in-state-of-the-union-address-195461"> two largest economies have 24 days</a> left in a three-month truce in their trade war before US duty rates are due to rise sharply -- an escalation that economists say could be a powerful negative shock to the global economy.

"We are now making it clear to China that after years of targeting our industries, and stealing our intellectual property, the theft of American jobs and wealth has come to an end," Trump said in his annual State of the Union address.

Any agreement with Beijing "must include real, structural change to end unfair trade practices," Trump said.

Last week, top US and Chinese officials proclaimed progress and comity after two days of talks in Washington, but they disclosed few details.

Washington and Beijing have slapped punishing tariffs on more than $360 billion in two-way trade, which has weighed on the two countries' manufacturing sectors and sent jitters through global markets.

The US trade deficit has swelled more than 18 per cent since Trump took office, rising far faster than economic growth, and has hit record heights with China in particular.

The president also renewed his often-repeated falsehood that China was paying the US import duties on its exports.

"Our Treasury is receiving billions of dollars a month from a country that never gave us a dime," Trump said.

In fact, such duties are paid by US importers, with costs in many cases passed on to consumers.

Trump also lauded signs of US economic strength, including robust job creation and falling unemployment.

"We are considered far and away the hottest economy anywhere in the world," Trump said.

"Unemployment has reached the lowest rate in over half a century."

The non-partisan Congressional Budget Office predicts the US economy will slow this year and the year after that as the effects of 2017's sweeping tax overhaul fade.

President Donald Trump on Tuesday told Congress that Washington's aggressive trade negotiations with Beijing would mean an end to China's alleged "theft" of US jobs and wealth.

President Donald Trump on Tuesday told Congress that Washington's aggressive trade negotiations with Beijing would mean an end to China's alleged "theft" of US jobs and wealth. In his annual State of the Union address, Trump also called on China to make the kind of far-reaching "structural" changes to industrial policy that analysts say Beijing is likely to resist. The world's two largest economies have 24 days left in a three-month truce in their trade war before US duty rates are due to rise sharply -- an escalation that economists say could be a powerful negative shock to the global economy. "We are now making it clear to China that after years of targeting our industries, and stealing our intellectual property, the theft of American jobs and wealth has come to an end," Trump said in his annual State of the Union address. Any agreement with Beijing "must include real, structural change to end unfair trade practices," Trump said. Last week, top US and Chinese officials proclaimed progress and comity after two days of talks in Washington, but they disclosed few details. Washington and Beijing have slapped punishing tariffs on more than $360 billion in two-way trade, which has weighed on the two countries' manufacturing sectors and sent jitters through global markets. The US trade deficit has swelled more than 18 per cent since Trump took office, rising far faster than economic growth, and has hit record heights with China in particular. The president also renewed his often-repeated falsehood that China was paying the US import duties on its exports. "Our Treasury is receiving billions of dollars a month from a country that never gave us a dime," Trump said. In fact, such duties are paid by US importers, with costs in many cases passed on to consumers. Trump also lauded signs of US economic strength, including robust job creation and falling unemployment. "We are considered far and away the hottest economy anywhere in the world," Trump said. "Unemployment has reached the lowest rate in over half a century." The non-partisan Congressional Budget Office predicts the US economy will slow this year and the year after that as the effects of 2017's sweeping tax overhaul fade.

Theft of American jobs, stealing of our intellectual property will end: Trump on trade deal with China in State of the Union address

Huawei executive <a href="http://www.wionews.com/world/will-pursue-extradition-of-huaweis-meng-wanzhou-confirms-us-justice-department-192267">Meng Wanzhou</a>, who was arrested in Canada and faces possible extradition to the United States, is exploring a defence that claims US&nbsp;charges against her are politically motivated, the Globe and Mail newspaper reported on Monday.

Meng, the chief financial officer of China's <a href="http://www.wionews.com/world/european-telecoms-dilemma-huawei-or-the-highway-194704">Huawei Technologies</a> Co Ltd, is the central figure in a high-stakes dispute between the United States and China. Canada arrested Meng in December at the request of the United States and last month she was charged with wire fraud that violated US&nbsp;sanctions on Iran.

"The political overlay of this case is remarkable," Richard Peck, lead counsel for Meng, told the Toronto newspaper in a telephone interview.

"That's probably the one thing that sets it apart from any other extradition case I've ever seen. It's got this cloud of politicization hanging over it," Peck added.

The office of Canadian Justice Minister David Lametti said it could not speculate on Meng's possible defences.

"We are committed to a fair process unfolding before the courts and the steps undertaken by the Department of Justice Canada on this case have followed due process, in accordance with the Extradition Act, the Charter of Rights and Freedoms and our Treaty with the United States," a spokeswoman for Canada's Department of Justice said in an e-mailed statement.

Peck's office did not respond to a request for comment. A Huawei spokesman declined to comment.

In December, US President Donald Trump said in a Reuters interview he would intervene in the Justice Department's case against Meng if it would serve national security interests or help close a trade deal with China.

Canada fired John McCallum, its ambassador to China, in January after he said Meng could make a strong argument against being sent to the United States.

"He [Mr McCallum] mentions some of the potential defences - and certainly, I think any person that knows this area would see the potential for those defences arising," Peck told the Globe and Mail.

Meng's lawyers are also planning to challenge whether her alleged conduct would be deemed criminal under Canadian law, the Globe and Mail said.

Huawei executive Meng Wanzhou, who was arrested in Canada and faces possible extradition to the United States, is exploring a defence that claims US charges against her are politically motivated, the Globe and Mail newspaper reported on Monday.

Huawei executive Meng Wanzhou, who was arrested in Canada and faces possible extradition to the United States, is exploring a defence that claims US charges against her are politically motivated, the Globe and Mail newspaper reported on Monday. Meng, the chief financial officer of China's Huawei Technologies Co Ltd, is the central figure in a high-stakes dispute between the United States and China. Canada arrested Meng in December at the request of the United States and last month she was charged with wire fraud that violated US sanctions on Iran. "The political overlay of this case is remarkable," Richard Peck, lead counsel for Meng, told the Toronto newspaper in a telephone interview. "That's probably the one thing that sets it apart from any other extradition case I've ever seen. It's got this cloud of politicization hanging over it," Peck added. The office of Canadian Justice Minister David Lametti said it could not speculate on Meng's possible defences. "We are committed to a fair process unfolding before the courts and the steps undertaken by the Department of Justice Canada on this case have followed due process, in accordance with the Extradition Act, the Charter of Rights and Freedoms and our Treaty with the United States," a spokeswoman for Canada's Department of Justice said in an e-mailed statement. Peck's office did not respond to a request for comment. A Huawei spokesman declined to comment. In December, US President Donald Trump said in a Reuters interview he would intervene in the Justice Department's case against Meng if it would serve national security interests or help close a trade deal with China. Canada fired John McCallum, its ambassador to China, in January after he said Meng could make a strong argument against being sent to the United States. "He [Mr McCallum] mentions some of the potential defences - and certainly, I think any person that knows this area would see the potential for those defences arising," Peck told the Globe and Mail. Meng's lawyers are also planning to challenge whether her alleged conduct would be deemed criminal under Canadian law, the Globe and Mail said.

Huawei CFO Wanzhou may fight extradition by claiming US political motive: Report

India is among the several countries that stand to benefit from the ongoing trade tensions between the world's top two economies - the US and China, the UN has said in its latest report.

The US and China are locked in a trade war since President Donald Trump imposed heavy tariffs on imported steel and aluminium items in March last year, a move that sparked fears of a global trade war.

In response, China imposed tit-for-tat tariffs on billions of dollars worth of American imports.

The United Nations experts said Monday that the tit-for-tat trade dispute between China and the United States may do little to protect domestic producers in either country and could have "massive" implications on the global economy unless it is resolved.

Of the $250 billion in Chinese exports that are subject to US tariffs, only about six per cent will be picked up by firms in the US, according to a report by the UN Conference on Trade and Development (UNCTAD).

And of the approximately $85 billion in US exports that are subject to China's tariffs, only about five per cent of this will be taken up by Chinese firms, according to the UN research.

In a bid to meet the US' demand for bringing down the $375 billion bilateral trade deficit, China has pledged to take measures to step-up American imports and investments. March 1, 2019, is the deadline for implementing the measures.

Unless the US and China agree to drop their tariff dispute by March 1, duty on each country's products will rise to 25 per cent, up from the current 10 per cent level, the UN said.

Countries that are expected to benefit the most from the trade war are the EU members as exports in the bloc are likely to grow by $70 billion. Japan and Canada will see exports increase by more than $20 billion each, it said.

Other countries set to benefit from the trade tensions include Australia, with 4.6 per cent export gains, Brazil (3.8) India (3.5), Philippines (3.2) and Vietnam (5), the study said.

Quoting former US Secretary of State Cordell Hull, UNCTAD's Pamela Coke-Hamilton repeated his description of protective tariffs as "a gun that recoils on ourselves", which had also contributed to the Great Depression of the 1930s and the rise of extremism.

"I think that is a single lesson from what we have had here today. If - barring an agreement between the US, China on March 1 - tariffs will escalate to 25 per cent, which is a significant difference from the 10 per cent as it currently exists," Coke-Hamilton said.

The implications of such a development would be "massive", the UNCTAD Director, Division on International Trade in Goods and Services, and Commodities continued, adding that its effects would, first of all, involve "an economic downturn... Due to instability in commodities and financial markets".

"One major concern is the risk that trade tensions could spiral into currency wars, making dollar-denominated debt more difficult to service," the report added.

Imposing tariffs make US-made products cheaper than imported ones and encourage consumers to buy American.&nbsp;

India is among the several countries that stand to benefit from the ongoing trade tensions between the world's top two economies - the US and China, the UN has said in its latest report.

India is among the several countries that stand to benefit from the ongoing trade tensions between the world's top two economies - the US and China, the UN has said in its latest report. The US and China are locked in a trade war since President Donald Trump imposed heavy tariffs on imported steel and aluminium items in March last year, a move that sparked fears of a global trade war. In response, China imposed tit-for-tat tariffs on billions of dollars worth of American imports. The United Nations experts said Monday that the tit-for-tat trade dispute between China and the United States may do little to protect domestic producers in either country and could have "massive" implications on the global economy unless it is resolved. Of the $250 billion in Chinese exports that are subject to US tariffs, only about six per cent will be picked up by firms in the US, according to a report by the UN Conference on Trade and Development (UNCTAD). And of the approximately $85 billion in US exports that are subject to China's tariffs, only about five per cent of this will be taken up by Chinese firms, according to the UN research. In a bid to meet the US' demand for bringing down the $375 billion bilateral trade deficit, China has pledged to take measures to step-up American imports and investments. March 1, 2019, is the deadline for implementing the measures. Unless the US and China agree to drop their tariff dispute by March 1, duty on each country's products will rise to 25 per cent, up from the current 10 per cent level, the UN said. Countries that are expected to benefit the most from the trade war are the EU members as exports in the bloc are likely to grow by $70 billion. Japan and Canada will see exports increase by more than $20 billion each, it said. Other countries set to benefit from the trade tensions include Australia, with 4.6 per cent export gains, Brazil (3.8) India (3.5), Philippines (3.2) and Vietnam (5), the study said. Quoting former US Secretary of State Cordell Hull, UNCTAD's Pamela Coke-Hamilton repeated his description of protective tariffs as "a gun that recoils on ourselves", which had also contributed to the Great Depression of the 1930s and the rise of extremism. "I think that is a single lesson from what we have had here today. If - barring an agreement between the US, China on March 1 - tariffs will escalate to 25 per cent, which is a significant difference from the 10 per cent as it currently exists," Coke-Hamilton said. The implications of such a development would be "massive", the UNCTAD Director, Division on International Trade in Goods and Services, and Commodities continued, adding that its effects would, first of all, involve "an economic downturn... Due to instability in commodities and financial markets". "One major concern is the risk that trade tensions could spiral into currency wars, making dollar-denominated debt more difficult to service," the report added. Imposing tariffs make US-made products cheaper than imported ones and encourage consumers to buy American.

India among countries to benefit from US-China trade war: United Nations

Thucydides, the great historian of the Peloponnesian Wars between Athens and Sparta, held by some to the doyen of the school of the realist school of international relations famously said: “What made war inevitable was the growth of Athenian power and the fear that this caused in Sparta”. This assertion, in the 20th century, formulated into a coinage by Harvard professor, Graham Allison, who called it the “Thucydides Trap” referred to the fear that a rising power caused in an incumbent one which then escalated toward war. &nbsp;&nbsp;

The "Thucydides Trap" appears to have a searing resonance in the relations between the United States and China with the former being the incumbent power and the latter a rising one. Echoes of the trap, while resplendent in most domains and areas of the relationship between the two also came when the United States sent two warships through the Taiwan Strait in the first such operation this year. &nbsp;&nbsp;

Taiwan being a major flashpoint between the United States and China, the voyage risks further heightening tensions with China, which considers Taiwan its own and has not ruled out the use of force to bring the self-ruled island under its control. While this particular incident or event is more in the nature of posturing designed to send a message to China but, in the grand scheme of things, it could be held as a prelude to a putative militarised dynamic and tenor of relations between the two countries.

All this assumes salience against the backdrop of the Trump presidency which has held China in its crosshairs. Be it the trade wars initiated by the American president, or other forms of disputes and tensions thereof, it is increasingly becoming clear that the United States is stymieing China’s efforts to attain Great Power status. 
 
Inevitably or perhaps naturally, China will not only resent this stymieing but also make counter efforts to check, balance or hedge the United States. What will ensue is friction and frisson which might, at some point in time, lend themselves to an outright confrontation between the two.

In the process, there will be an inexorable drift to the “Thucydides Trap” which might become a self-fulfilling prophecy.

An alarming scenario, it must be checked and contained the soonest for if war occurs between the United States and China, the strides of progress that the world has made will be frittered and, in an extreme scenario, mankind’s survival might be at risk. The question is how?

The answer lies in the realm of both politics and economics. As the wit has said, “all war is bad politics”. This is a maxim that powers that be across the China-United States divide must take to heart and devise means and mechanism of a political nature that precludes the option of war. In the realm of the immediate, this could mean instituting and crystallising confidence-building measures that aim at reassurance and not confrontation and conflict.&nbsp;

The complement to this approach must be disavowing mercantilist protectionist approaches of the political economy toward each other and actually deepening trade and financial linkages. While this “complex interdependence”, historically, did not prevent the first World War, but deepening trade and financial linkages, because they lead to economic growth and development for members enmeshed into its framework, create stakes and opportunities which make war not impossible but improbable. 
&nbsp; 
It is the cumulative confluence of the two that might create propitious conditions between China and the United States and preclude the drift toward war. But, alas, the actual and real condition of the world and domestic politics across the world suggest that this salubrious condition or set of conditions might not actually come to pass. The “return” of the nation-state and its concomitant, nationalism, along with protectionist mercantilism besides leading to what has been called “ deglobalisation” is also making the world a more edgy and a fraught place. Among other things, this has heightened the salience of geopolitics and competition thereof whose corollary is heightened conflict and tension.&nbsp;

Without any real checks to militarised competition between the major states of the international system and a flawed and weak global governance institutional architecture, what might actually come to pass is the “Thucydides Trap” which, broken down, amidst the contemporary geopolitical and world political configuration might mean war between China and the United States. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Thucydides, the great historian of the Peloponnesian Wars between Athens and Sparta, held by some to the doyen of the school of the realist school of international relations famously said: “What made war inevitable was the growth of Athenian power and the fear that this caused in Sparta”.

Thucydides, the great historian of the Peloponnesian Wars between Athens and Sparta, held by some to the doyen of the school of the realist school of international relations famously said: “What made war inevitable was the growth of Athenian power and the fear that this caused in Sparta”. This assertion, in the 20th century, formulated into a coinage by Harvard professor, Graham Allison, who called it the “Thucydides Trap” referred to the fear that a rising power caused in an incumbent one which then escalated toward war. The "Thucydides Trap" appears to have a searing resonance in the relations between the United States and China with the former being the incumbent power and the latter a rising one. Echoes of the trap, while resplendent in most domains and areas of the relationship between the two also came when the United States sent two warships through the Taiwan Strait in the first such operation this year. Taiwan being a major flashpoint between the United States and China, the voyage risks further heightening tensions with China, which considers Taiwan its own and has not ruled out the use of force to bring the self-ruled island under its control. While this particular incident or event is more in the nature of posturing designed to send a message to China but, in the grand scheme of things, it could be held as a prelude to a putative militarised dynamic and tenor of relations between the two countries. All this assumes salience against the backdrop of the Trump presidency which has held China in its crosshairs. Be it the trade wars initiated by the American president, or other forms of disputes and tensions thereof, it is increasingly becoming clear that the United States is stymieing China’s efforts to attain Great Power status. Inevitably or perhaps naturally, China will not only resent this stymieing but also make counter efforts to check, balance or hedge the United States. What will ensue is friction and frisson which might, at some point in time, lend themselves to an outright confrontation between the two. In the process, there will be an inexorable drift to the “Thucydides Trap” which might become a self-fulfilling prophecy. An alarming scenario, it must be checked and contained the soonest for if war occurs between the United States and China, the strides of progress that the world has made will be frittered and, in an extreme scenario, mankind’s survival might be at risk. The question is how? The answer lies in the realm of both politics and economics. As the wit has said, “all war is bad politics”. This is a maxim that powers that be across the China-United States divide must take to heart and devise means and mechanism of a political nature that precludes the option of war. In the realm of the immediate, this could mean instituting and crystallising confidence-building measures that aim at reassurance and not confrontation and conflict. The complement to this approach must be disavowing mercantilist protectionist approaches of the political economy toward each other and actually deepening trade and financial linkages. While this “complex interdependence”, historically, did not prevent the first World War, but deepening trade and financial linkages, because they lead to economic growth and development for members enmeshed into its framework, create stakes and opportunities which make war not impossible but improbable. It is the cumulative confluence of the two that might create propitious conditions between China and the United States and preclude the drift toward war. But, alas, the actual and real condition of the world and domestic politics across the world suggest that this salubrious condition or set of conditions might not actually come to pass. The “return” of the nation-state and its concomitant, nationalism, along with protectionist mercantilism besides leading to what has been called “ deglobalisation” is also making the world a more edgy and a fraught place. Among other things, this has heightened the salience of geopolitics and competition thereof whose corollary is heightened conflict and tension. Without any real checks to militarised competition between the major states of the international system and a flawed and weak global governance institutional architecture, what might actually come to pass is the “Thucydides Trap” which, broken down, amidst the contemporary geopolitical and world political configuration might mean war between China and the United States. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

China-United States relations and the 'Thucydides Trap'

After reports emerged that the<a href="http://www.wionews.com/world/us-to-formally-seek-extradition-of-huawei-executive-meng-wanzhou-globe-and-mail-191936"> US may formally extradite Huawei executive</a> Meng Wanzhou from Canada, the Chinese foreign ministry said it is an abuse of extradition treaties between the United States and Canada and a serious violation of Chinese citizen's safety and legitimate rights and interests.

"China has strongly urged Canada to<a href="http://www.wionews.com/world/executive-of-chinas-huawei-asks-for-bail-in-us-extradition-case-183236"> immediately release Ms Meng</a>, and earnestly guarantee her justified and legitimate rights," China's foreign ministry spokesman Hua Chunying said.

Meng, 46, who is the daughter of the founder Ren Zhengfei, was arrested and then released on bail last month by a Canadian court after the United States accused the Huawei top executive of misleading multinational banks about Iran-linked transactions thereby working against US sanctions.

Meng denied the charge as she was released subject to guarantee of $7.5 million and barred from leaving the country. The development angered Chinese authorities threatened&nbsp;severe consequences if Meng was extradited to the US.

Meng has been&nbsp;put under electronic surveillance in a luxury home in Vancouver awaiting action from the US administration.

"China has also strongly urged the United States to immediately correct its mistake, repeal its warrant of arrest for Meng Wanzhou and drop the extradition request to Canada," the foreign ministry spokesman said.

Meng was detained on December 1st as she was changing planes in Vancouver airport.

Relations between Canada and China have hit rock bottom ever since the Meng incident unfolded with Chinese authorities detaining ex-diplomat Michael Kovrig and China-based business consultant Michael Spavor for harming "national security".&nbsp;

As relations deteriorated, China announced death sentence for Canadian national Robert Schellenberg for smuggling methamphetamines even as Canada denounced the move.&nbsp;

After reports emerged that the US may formally extradite Huawei executive Meng Wanzhou from Canada, the Chinese foreign ministry said it is an abuse of extradition treaties between the United States and Canada and a serious violation of Chinese citizen's safety and legitimate rights and interests.

After reports emerged that the US may formally extradite Huawei executive Meng Wanzhou from Canada, the Chinese foreign ministry said it is an abuse of extradition treaties between the United States and Canada and a serious violation of Chinese citizen's safety and legitimate rights and interests. "China has strongly urged Canada to immediately release Ms Meng, and earnestly guarantee her justified and legitimate rights," China's foreign ministry spokesman Hua Chunying said. Meng, 46, who is the daughter of the founder Ren Zhengfei, was arrested and then released on bail last month by a Canadian court after the United States accused the Huawei top executive of misleading multinational banks about Iran-linked transactions thereby working against US sanctions. Meng denied the charge as she was released subject to guarantee of $7.5 million and barred from leaving the country. The development angered Chinese authorities threatened severe consequences if Meng was extradited to the US. Meng has been put under electronic surveillance in a luxury home in Vancouver awaiting action from the US administration. "China has also strongly urged the United States to immediately correct its mistake, repeal its warrant of arrest for Meng Wanzhou and drop the extradition request to Canada," the foreign ministry spokesman said. Meng was detained on December 1st as she was changing planes in Vancouver airport. Relations between Canada and China have hit rock bottom ever since the Meng incident unfolded with Chinese authorities detaining ex-diplomat Michael Kovrig and China-based business consultant Michael Spavor for harming "national security". As relations deteriorated, China announced death sentence for Canadian national Robert Schellenberg for smuggling methamphetamines even as Canada denounced the move.

Strongly urge US to immediately drop extradition request for Huawei's Meng Wanzhou: China

White House economic adviser Larry Kudlow has played down reports of a breakthrough in US-China trade talks, but said progress had been made.

"We've made some progress with China in the deputy's meeting in Beijing," Larry Kudlow, director of the National Economic Council, told Fox Business.&nbsp;

But he added, "Nothing has been resolved, nothing on paper, no contracts."

Recent news reports of a deal being imminent were not accurate, he said.

Bloomberg had reported earlier Friday that Beijing had offered to eliminate its soaring trade surplus with the United States in five years.

The US sent a delegation led by Deputy Trade Representative Jeffrey Gerrish to Beijing earlier this month, where they held talks with China's foreign ministry to seek ways to end their trade war.

China's chief negotiator on trade disputes with the United States, Vice Premier Liu He, is due in Washington on January 30 and 31 for the next round talks.

In December, President Trump and Chinese leader Xi Jinping agreed to a truce in their three-month trade war.

Washington suspended plans to increase tariffs on Chinese goods, to give negotiators space to find a solution to the dispute, which has triggered fears of a global economic slowdown.

White House economic adviser Larry Kudlow has played down reports of a breakthrough in US-China trade talks, but said progress had been made. "We've made some progress with China in the deputy's meeting in Beijing," Larry Kudlow, director of the National Economic Council, told Fox Business.

White House economic adviser Larry Kudlow has played down reports of a breakthrough in US-China trade talks, but said progress had been made. "We've made some progress with China in the deputy's meeting in Beijing," Larry Kudlow, director of the National Economic Council, told Fox Business. But he added, "Nothing has been resolved, nothing on paper, no contracts." Recent news reports of a deal being imminent were not accurate, he said. Bloomberg had reported earlier Friday that Beijing had offered to eliminate its soaring trade surplus with the United States in five years. The US sent a delegation led by Deputy Trade Representative Jeffrey Gerrish to Beijing earlier this month, where they held talks with China's foreign ministry to seek ways to end their trade war. China's chief negotiator on trade disputes with the United States, Vice Premier Liu He, is due in Washington on January 30 and 31 for the next round talks. In December, President Trump and Chinese leader Xi Jinping agreed to a truce in their three-month trade war. Washington suspended plans to increase tariffs on Chinese goods, to give negotiators space to find a solution to the dispute, which has triggered fears of a global economic slowdown.

No breakthrough in US-China trade talks: Trump adviser

Asian stocks advanced on Friday as a report of progress in US-China trade talks stirred hopes of a deal in their tariff dispute and supported risk sentiment.

The Wall Street Journal reported on Thursday that US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for January 30.

US stocks rallied following the report, but pared some of those gains after a Treasury spokesperson told CNBC that Mnuchin had not made any such recommendations. WSJ also reported that US Trade Representative Robert Lighthizer has resisted Mnuchin`s idea. For the day, all three major US indexes were up, led by a surge in industrial stocks.&nbsp;

Even the whiff of progress in the months-long Sino-U.S. trade war helped boost risk sentiment. MSCI`s broadest index of Asia-Pacific shares outside Japan added 0.7 per cent. The index has gained 1.4 per cent this week.

The Shanghai Composite Index was up 0.8 per cent.

Australian stocks rose 0.5 per cent, as did South Korea`s KOSPI while Japan`s Nikkei gained more than 1 per cent to a one-month high.

"As with 2018, the U.S.-China trade row remains a key market theme in 2019. A slight difference is that there are some signs that the two sides are seeking some sort of a resolution," said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo.

"China seems to be running low on options, while the United States would also want to avoid a prolonged conflict given the negative consequences on its markets and the economy," Monji said.

Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for the latest round of trade talks aimed at resolving the dispute between the world`s two largest economies.

In December, Washington and Beijing agreed to a 90-day truce in a trade war that has disrupted the flow of hundreds of billions of dollars of goods.

Indicators released recently have shown signs that the Chinese economy is losing some momentum.

China`s fourth-quarter economic growth, due to be reported on Monday, likely slowed to the weakest pace since the global financial crisis, a Reuters poll showed, as demand faltered at home and abroad.

The dollar was mildly supported after US Treasury yields rose amid the improvement in risk appetite in the broader markets.

The greenback was a shade higher at 109.320 yen after popping up to a two-week high of 109.40 overnight. The dollar has gained about 0.7 per cent against the Japanese currency this week.

The euro was little changed at $1.1393 after dipping slightly overnight. The common currency was on track for a weekly loss of 0.7 per cent.

The 10-year Treasury yield stood at 2.750 per cent after going brushing 2.761 per cent the previous day, its highest in three weeks.

The pound traded at $1.2978, hovering close to a two-month peak of $1.3001 scaled overnight on the back of hopes that Britain can avoid a no-deal Brexit.

British Prime Minister Theresa May`s Brexit deal suffered a heavy defeat in parliament this week but she survived a subsequent vote of confidence, removing some political uncertainty for now.

US crude oil futures extended gains after rising the previous day on a bounce in Wall Street and news that OPEC sharply curtailed production in December.&nbsp;

US crude futures added 1 per cent to $52.61 per barrel. The contracts have gained more than 2 per cent this week.

Brent crude was up 0.8 per cent at $61.67 per barrel and on track to gain 2 per cent on the week.

Elsewhere in commodities, palladium was 0.6 per cent higher at $1,403.50 an ounce after rising to an all-time high of $1,434.50 overnight.

Demand has recently outstripped supply for the metal, used in emissions-reducing catalytic converters for cars. Palladium also appeared to get a boost from hopes for further government stimulus in China, the world`s biggest auto market.&nbsp;

Spot gold was steady at $1,291.56 an ounce, having relinquished its spot as the most expensive precious metal to palladium early in December.

Asian stocks advanced on Friday as a report of progress in US-China trade talks stirred hopes of a deal in their tariff dispute and supported risk sentiment. The Wall Street Journal reported on Thursday that US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for January 30.

Asian stocks advanced on Friday as a report of progress in US-China trade talks stirred hopes of a deal in their tariff dispute and supported risk sentiment. The Wall Street Journal reported on Thursday that US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for January 30. US stocks rallied following the report, but pared some of those gains after a Treasury spokesperson told CNBC that Mnuchin had not made any such recommendations. WSJ also reported that US Trade Representative Robert Lighthizer has resisted Mnuchin`s idea. For the day, all three major US indexes were up, led by a surge in industrial stocks. Even the whiff of progress in the months-long Sino-U.S. trade war helped boost risk sentiment. MSCI`s broadest index of Asia-Pacific shares outside Japan added 0.7 per cent. The index has gained 1.4 per cent this week. The Shanghai Composite Index was up 0.8 per cent. Australian stocks rose 0.5 per cent, as did South Korea`s KOSPI while Japan`s Nikkei gained more than 1 per cent to a one-month high. "As with 2018, the U.S.-China trade row remains a key market theme in 2019. A slight difference is that there are some signs that the two sides are seeking some sort of a resolution," said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo. "China seems to be running low on options, while the United States would also want to avoid a prolonged conflict given the negative consequences on its markets and the economy," Monji said. Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for the latest round of trade talks aimed at resolving the dispute between the world`s two largest economies. In December, Washington and Beijing agreed to a 90-day truce in a trade war that has disrupted the flow of hundreds of billions of dollars of goods. Indicators released recently have shown signs that the Chinese economy is losing some momentum. China`s fourth-quarter economic growth, due to be reported on Monday, likely slowed to the weakest pace since the global financial crisis, a Reuters poll showed, as demand faltered at home and abroad. The dollar was mildly supported after US Treasury yields rose amid the improvement in risk appetite in the broader markets. The greenback was a shade higher at 109.320 yen after popping up to a two-week high of 109.40 overnight. The dollar has gained about 0.7 per cent against the Japanese currency this week. The euro was little changed at $1.1393 after dipping slightly overnight. The common currency was on track for a weekly loss of 0.7 per cent. The 10-year Treasury yield stood at 2.750 per cent after going brushing 2.761 per cent the previous day, its highest in three weeks. The pound traded at $1.2978, hovering close to a two-month peak of $1.3001 scaled overnight on the back of hopes that Britain can avoid a no-deal Brexit. British Prime Minister Theresa May`s Brexit deal suffered a heavy defeat in parliament this week but she survived a subsequent vote of confidence, removing some political uncertainty for now. US crude oil futures extended gains after rising the previous day on a bounce in Wall Street and news that OPEC sharply curtailed production in December. US crude futures added 1 per cent to $52.61 per barrel. The contracts have gained more than 2 per cent this week. Brent crude was up 0.8 per cent at $61.67 per barrel and on track to gain 2 per cent on the week. Elsewhere in commodities, palladium was 0.6 per cent higher at $1,403.50 an ounce after rising to an all-time high of $1,434.50 overnight. Demand has recently outstripped supply for the metal, used in emissions-reducing catalytic converters for cars. Palladium also appeared to get a boost from hopes for further government stimulus in China, the world`s biggest auto market. Spot gold was steady at $1,291.56 an ounce, having relinquished its spot as the most expensive precious metal to palladium early in December.

Global Markets: Asia stocks advance on US-China trade relief

By Christopher Dent

The clock is ticking for China and the US to resolve their trade dispute. Some progress was made at the last round of talks (January 7-9) but negotiators must find a comprehensive agreement by March 2.&nbsp;

If they fail, the US government plans to raise tariffs from 10 per cent to 25 per cent on $200 billion of Chinese imports. This would have an enormous impact not just on US-China bilateral trade but also on many other countries due to global supply chain linkages.

The US president, Donald Trump, wishes to adjust the “terms of trade” between both countries, addressing what he alleges are China’s “unfair” trading practices. Many observers believe this is a battle not just about trade but also about economic and technological supremacy.

The Trump administration accuses China of stealing technology from American companies. It has also been critical of the Chinese government’s strategic plans to make the country a world leader in industry sectors such as aerospace, renewable energy, robotics and electric vehicles. The recent successful landing of a Chinese spacecraft on the Moon would have caused further consternation among Americans fearful of China’s new technological capacities.

The US says it wants China to become a free market economy and ditch its state management approach. Ironically, the credibility of America’s position on this matter is undermined by Trump’s own protectionist stance on trade, which itself constitutes significant state intervention in the marketplace.

But, despite their political and economic differences, the reality is that the US and China’s economies are deeply interconnected through various layers of commercial, financial and production links. The two are so entwined that they have been dubbed a symbiotic “Chimerica” economy.

Economic interdependence

US-China economic interdependence has to be carefully managed and many companies are critical of the Trump administration’s decision to raise tariffs. They rightly warn that aggressive US actions against China will ultimately harm American firms, workers and consumers. What’s more, the world’s two largest national economies lie at the core of an ever more integrated global economy. Any significant disruption to their relationship will have major ramifications for businesses worldwide.

From his actions and tweeted thinking to date, it appears that Trump is failing to acknowledge the extent of US-China economic interdependence, or is choosing to ignore it. While the US trade deficit of $336 billion with China in 2017 is at some level a cause for concern, China recycles much of its surplus back through buying US government securities.

Taking the car industry as an example, we can reasonably assume that Trump wishes to see more cars made by Ford, General Motors and other American firms in the US, which get sold both at home and in foreign markets. Ideally, in Trump’s view, they would also be sourcing materials and parts from US-based companies, thus overall generating more jobs and prosperity for Americans. But this cannot be sustainably achieved through protectionist trade measures.

Trump’s adoption of a defensive economic nationalist position and a simplistic “imports bad, exports good” mindset chimes with a 19th-century view of the world economy. Then it was the norm for companies to organise production in one nation and simply export from it. Today, technological advances mean companies increasingly organise their production across nations, mainly for reasons of cost efficiency, making goods cheaper to buy and providing wider consumer choice. In many of the world’s major industries, it makes no economic sense today to do otherwise.

Competitive advantage

For companies, the ultimate arbiter of success is the consumer. The fundamental reason why the sales of American car manufacturers have fallen over the years – both at home and in export markets – is not due to “unfair” trade practices but because they lack competitiveness. The same logic applies to other industries.

Sales of foreign cars in Japan illustrates this. While the Japanese car market is hard for foreign firms to penetrate, Japan does not apply import tariffs in this sector. So both European and US firms face the same challenges in satisfying the discerning Japanese consumer.

From 2013 to 2016, Japan’s imports of US cars fell from 23,381 to 19,933, whereas imports of European vehicles increased from 239,090 to 251,155. If Trump wishes American car makers to expand production and exports, they need to produce more competitive and desirable products.

Sometimes, this is extraordinarily difficult to achieve in industries experiencing deep structural decline, such as the US steel sector. There are, of course, many other sectors where American firms have developed a competitive advantage over their foreign rivals, such as cinema and television shows, popular culture, financial services and university education.

Higher tariffs on US imports of goods from China and other countries will in most cases be passed on as higher prices to American consumers, raising inflation and, in turn, interest rates. One of the ironies of imposing import tariffs on goods from China is that a high volume of these will come from US companies such as Apple and Dell, which assemble their products cost competitively in China, then export them to US consumers. Trump calls for these firms to relocate their production back to the US, but comparatively much higher labour and other costs would lead to higher prices for consumers and inflation.

It is time for the US president to end his short-sighted and self-harming trade policies, and fully appreciate the inter-connected nature of the 21st-century global economy and society. The future health of the global economy depends on a good working partnership between the US and China. Both countries must quickly end this trade war and focus instead on establishing more harmonious relations – for all our sakes.

(Christopher Dent is Senior Lecturer, Edge Hill University)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/why-there-will-be-no-winners-from-the-us-china-trade-war-109822">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

&nbsp;

By Christopher Dent The clock is ticking for China and the US to resolve their trade dispute. Some progress was made at the last round of talks (January 7-9) but negotiators must find a comprehensive agreement by March 2.

By Christopher Dent The clock is ticking for China and the US to resolve their trade dispute. Some progress was made at the last round of talks (January 7-9) but negotiators must find a comprehensive agreement by March 2. If they fail, the US government plans to raise tariffs from 10 per cent to 25 per cent on $200 billion of Chinese imports. This would have an enormous impact not just on US-China bilateral trade but also on many other countries due to global supply chain linkages. The US president, Donald Trump, wishes to adjust the “terms of trade” between both countries, addressing what he alleges are China’s “unfair” trading practices. Many observers believe this is a battle not just about trade but also about economic and technological supremacy. The Trump administration accuses China of stealing technology from American companies. It has also been critical of the Chinese government’s strategic plans to make the country a world leader in industry sectors such as aerospace, renewable energy, robotics and electric vehicles. The recent successful landing of a Chinese spacecraft on the Moon would have caused further consternation among Americans fearful of China’s new technological capacities. The US says it wants China to become a free market economy and ditch its state management approach. Ironically, the credibility of America’s position on this matter is undermined by Trump’s own protectionist stance on trade, which itself constitutes significant state intervention in the marketplace. But, despite their political and economic differences, the reality is that the US and China’s economies are deeply interconnected through various layers of commercial, financial and production links. The two are so entwined that they have been dubbed a symbiotic “Chimerica” economy. Economic interdependence US-China economic interdependence has to be carefully managed and many companies are critical of the Trump administration’s decision to raise tariffs. They rightly warn that aggressive US actions against China will ultimately harm American firms, workers and consumers. What’s more, the world’s two largest national economies lie at the core of an ever more integrated global economy. Any significant disruption to their relationship will have major ramifications for businesses worldwide. From his actions and tweeted thinking to date, it appears that Trump is failing to acknowledge the extent of US-China economic interdependence, or is choosing to ignore it. While the US trade deficit of $336 billion with China in 2017 is at some level a cause for concern, China recycles much of its surplus back through buying US government securities. Taking the car industry as an example, we can reasonably assume that Trump wishes to see more cars made by Ford, General Motors and other American firms in the US, which get sold both at home and in foreign markets. Ideally, in Trump’s view, they would also be sourcing materials and parts from US-based companies, thus overall generating more jobs and prosperity for Americans. But this cannot be sustainably achieved through protectionist trade measures. Trump’s adoption of a defensive economic nationalist position and a simplistic “imports bad, exports good” mindset chimes with a 19th-century view of the world economy. Then it was the norm for companies to organise production in one nation and simply export from it. Today, technological advances mean companies increasingly organise their production across nations, mainly for reasons of cost efficiency, making goods cheaper to buy and providing wider consumer choice. In many of the world’s major industries, it makes no economic sense today to do otherwise. Competitive advantage For companies, the ultimate arbiter of success is the consumer. The fundamental reason why the sales of American car manufacturers have fallen over the years – both at home and in export markets – is not due to “unfair” trade practices but because they lack competitiveness. The same logic applies to other industries. Sales of foreign cars in Japan illustrates this. While the Japanese car market is hard for foreign firms to penetrate, Japan does not apply import tariffs in this sector. So both European and US firms face the same challenges in satisfying the discerning Japanese consumer. From 2013 to 2016, Japan’s imports of US cars fell from 23,381 to 19,933, whereas imports of European vehicles increased from 239,090 to 251,155. If Trump wishes American car makers to expand production and exports, they need to produce more competitive and desirable products. Sometimes, this is extraordinarily difficult to achieve in industries experiencing deep structural decline, such as the US steel sector. There are, of course, many other sectors where American firms have developed a competitive advantage over their foreign rivals, such as cinema and television shows, popular culture, financial services and university education. Higher tariffs on US imports of goods from China and other countries will in most cases be passed on as higher prices to American consumers, raising inflation and, in turn, interest rates. One of the ironies of imposing import tariffs on goods from China is that a high volume of these will come from US companies such as Apple and Dell, which assemble their products cost competitively in China, then export them to US consumers. Trump calls for these firms to relocate their production back to the US, but comparatively much higher labour and other costs would lead to higher prices for consumers and inflation. It is time for the US president to end his short-sighted and self-harming trade policies, and fully appreciate the inter-connected nature of the 21st-century global economy and society. The future health of the global economy depends on a good working partnership between the US and China. Both countries must quickly end this trade war and focus instead on establishing more harmonious relations – for all our sakes. (Christopher Dent is Senior Lecturer, Edge Hill University) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Why there will be no winners from the US-China trade war

President Donald Trump said Monday he expects to be able to reach a trade deal with China, which is feeling the impact of US tariffs.

"We are doing very well with China. They're having a hard with their economy because of the tariffs," Trump told reporters at the White House.&nbsp;

"I think that we are going to be able to do a deal with China."&nbsp;

US officials were in Beijing last week for talks aimed at ending the bruising trade confrontation that has subjected more than $350 billion in two-way trade to steep tariffs.

Chinese officials said the next round of negotiations would be held in Washington between January 30 and 31.

Trump and Chinese leader Xi Jinping agreed on December 1 to a three-month truce in the escalating spat.

"I can tell you we are getting things that before I became president you would have had no chance at getting," Trump said. "They would have laughed in your president's face."

As Trump has pressed Beijing to increase imports of US goods, China's trade surplus with the United States hit a record last year of $323.3 billion, an 11 per cent increase over 2017, according to Chinese customs data released Monday.

However, in a sign that the White House's punitive measures are having an impact, China's exports to the US sank last month.&nbsp;

And China's total exports fell 4.4 per cent in December from a year earlier, while imports dropped 7.6 per cent, reflecting sluggish demand at home and abroad.

President Donald Trump said Monday he expects to be able to reach a trade deal with China, which is feeling the impact of US tariffs. "We are doing very well with China.

President Donald Trump said Monday he expects to be able to reach a trade deal with China, which is feeling the impact of US tariffs. "We are doing very well with China. They're having a hard with their economy because of the tariffs," Trump told reporters at the White House. "I think that we are going to be able to do a deal with China." US officials were in Beijing last week for talks aimed at ending the bruising trade confrontation that has subjected more than $350 billion in two-way trade to steep tariffs. Chinese officials said the next round of negotiations would be held in Washington between January 30 and 31. Trump and Chinese leader Xi Jinping agreed on December 1 to a three-month truce in the escalating spat. "I can tell you we are getting things that before I became president you would have had no chance at getting," Trump said. "They would have laughed in your president's face." As Trump has pressed Beijing to increase imports of US goods, China's trade surplus with the United States hit a record last year of $323.3 billion, an 11 per cent increase over 2017, according to Chinese customs data released Monday. However, in a sign that the White House's punitive measures are having an impact, China's exports to the US sank last month. And China's total exports fell 4.4 per cent in December from a year earlier, while imports dropped 7.6 per cent, reflecting sluggish demand at home and abroad.

I think we are going to be able to do trade deal with China: Trump

The Trump administration said today that <a href="http://www.wionews.com/world/china-condemns-us-south-china-sea-freedom-navigation-operation-168987">a naval destroyer sailed in </a><a href="http://www.wionews.com/world/china-condemns-us-south-china-sea-freedom-navigation-operation-168987">South</a><a href="http://www.wionews.com/world/china-condemns-us-south-china-sea-freedom-navigation-operation-168987"> China Sea</a> to challenge what it claimed "excessive maritime claims".

China claims islands on the South China sea even though Brunei, Malaysia, the Philippines, Vietnam and Taiwan have repeatedly said it belongs to them.

The USS McCampbell carried out a "freedom of navigation" operation, sailing within 12 nautical miles of the Paracel Island chain, "to challenge excessive maritime claims", Pacific Fleet spokeswoman Rachel McMarr said.

The destroyer sailed near the disputed Paracel Islands in the South China Sea which is claimed by China.

The operation was not about any one country or to make a political statement, McMarr added.&nbsp;

US vice-president Mike Pence had said earlier that South China Sea does not belong to any one nation and the United States will continue to sail and fly wherever international law allows

China had said last year that it was in talks on conducting a code of conduct doctrine with other nations in the disputed South China Sea which was agreed upon at the &nbsp;10-member Association of Southeast Asian Nations (ASEAN).

China said the consultation and final agreement process would take three years.

The US had said it is against "militarisation of the South China Sea. The US had earlier sent a naval destroyer USS Decatur near the disputed islands, a move which was condemned by China.

China's foreign ministry has of claimed "irrefutable sovereignty" over the South China Sea islands and the waters around them. Three years ago the international court in The Hague had ruled that China does not have legal rights to several islands in the South China Sea.

The Chinese president Xi Jinping&nbsp;had rejected the international court's verdict bluntly declaring that the country wouldn't accept "any claim or action based on those awards". China's ambassador to the US, Cui Tiankai, had said the tribunal lacked "professional incompetence" and had "questionable integrity".

In September last year, the US had flown B-52 bombers over the South China Sea and the East China Sea which was described as "provocative" by the Chinese defence ministry.

The Trump administration said today that a naval destroyer sailed in South China Sea to challenge what it claimed "excessive maritime claims". China claims islands on the South China sea even though Brunei, Malaysia, the Philippines, Vietnam and Taiwan have repeatedly said it belongs to them.

The Trump administration said today that a naval destroyer sailed in South China Sea to challenge what it claimed "excessive maritime claims". China claims islands on the South China sea even though Brunei, Malaysia, the Philippines, Vietnam and Taiwan have repeatedly said it belongs to them. The USS McCampbell carried out a "freedom of navigation" operation, sailing within 12 nautical miles of the Paracel Island chain, "to challenge excessive maritime claims", Pacific Fleet spokeswoman Rachel McMarr said. The destroyer sailed near the disputed Paracel Islands in the South China Sea which is claimed by China. The operation was not about any one country or to make a political statement, McMarr added. US vice-president Mike Pence had said earlier that South China Sea does not belong to any one nation and the United States will continue to sail and fly wherever international law allows China had said last year that it was in talks on conducting a code of conduct doctrine with other nations in the disputed South China Sea which was agreed upon at the 10-member Association of Southeast Asian Nations (ASEAN). China said the consultation and final agreement process would take three years. The US had said it is against "militarisation of the South China Sea. The US had earlier sent a naval destroyer USS Decatur near the disputed islands, a move which was condemned by China. China's foreign ministry has of claimed "irrefutable sovereignty" over the South China Sea islands and the waters around them. Three years ago the international court in The Hague had ruled that China does not have legal rights to several islands in the South China Sea. The Chinese president Xi Jinping had rejected the international court's verdict bluntly declaring that the country wouldn't accept "any claim or action based on those awards". China's ambassador to the US, Cui Tiankai, had said the tribunal lacked "professional incompetence" and had "questionable integrity". In September last year, the US had flown B-52 bombers over the South China Sea and the East China Sea which was described as "provocative" by the Chinese defence ministry.

Naval destroyer sailed through South China Sea to ensure freedom of navigation: US

China and the United States want to work together on trade, the Chinese foreign ministry said on Monday, as the world's two largest economies resumed talks in a bid to end their trade dispute.

US&nbsp;officials are meeting their counterparts in Beijing this week for the first face-to-face talks since US&nbsp;President Donald Trump and China's President Xi Jinping agreed in December agreed to a 90-day truce in a trade war that has roiled international markets.

Trump said on Sunday that trade talks with China were going very well and that weakness in the Chinese economy gave Beijing a reason to work toward a deal.

The two sides agreed to hold "positive and constructive" talks and dialogue to resolve economic and trade disputes in accordance with the consensus reached by the countries' leaders, Lu Kang, a spokesman at the foreign ministry, told reporters.

"From the beginning, we have believed that China-US&nbsp;trade friction is not a positive situation for either country or the world economy. China has a good faith, on the basis of mutual respect and equality, to resolve the bilateral trade frictions," Lu said.

Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods last year and has threatened more to pressure Beijing to change its practices on issues ranging from industrial subsidies to intellectual property to hacking. China retaliated with tariffs of its own.

"As for whether the Chinese economy is good or not, I have already explained this. China's development has ample tenacity and huge potential," Lu said. "We have firm confidence in the strong long-term fundamentals of the Chinese economy."

China and the United States want to work together on trade, the Chinese foreign ministry said on Monday, as the world's two largest economies resumed talks in a bid to end their trade dispute.

China and the United States want to work together on trade, the Chinese foreign ministry said on Monday, as the world's two largest economies resumed talks in a bid to end their trade dispute. US officials are meeting their counterparts in Beijing this week for the first face-to-face talks since US President Donald Trump and China's President Xi Jinping agreed in December agreed to a 90-day truce in a trade war that has roiled international markets. Trump said on Sunday that trade talks with China were going very well and that weakness in the Chinese economy gave Beijing a reason to work toward a deal. The two sides agreed to hold "positive and constructive" talks and dialogue to resolve economic and trade disputes in accordance with the consensus reached by the countries' leaders, Lu Kang, a spokesman at the foreign ministry, told reporters. "From the beginning, we have believed that China-US trade friction is not a positive situation for either country or the world economy. China has a good faith, on the basis of mutual respect and equality, to resolve the bilateral trade frictions," Lu said. Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods last year and has threatened more to pressure Beijing to change its practices on issues ranging from industrial subsidies to intellectual property to hacking. China retaliated with tariffs of its own. "As for whether the Chinese economy is good or not, I have already explained this. China's development has ample tenacity and huge potential," Lu said. "We have firm confidence in the strong long-term fundamentals of the Chinese economy."

Want to work together with US on trade: China foreign ministry

The China travel advisory issued by the <a href="http://www.wionews.com/world/us-govt-delegation-to-visit-china-for-trade-talks-188148">United States does not hold water</a>, said a spokesman of China's ministry of foreign affairs on Friday.

The spokesman, Lu Kang, made the remarks when commenting on the renewed travel advisory by the US&nbsp;State Department earlier on Thursday. The advisory says that US&nbsp;citizens must exercise caution against China's use of "exit ban" that would prohibit US&nbsp;citizens from leaving China.

Lu said that China always welcomes foreign citizens, including those of the United States, to visit China and protects by law their safety and legitimate rights and interests in China, including the freedom of entry and exit.

"We hope that foreign citizens in China respect and abide by Chinese laws," Lu said.

"Here, I would like to point out that, China's judicial organs have always adhered to justice and law in handling cases involving foreign citizens suspected of law violations and crimes and protect them by law all their legitimate rights and interests. The travel advisory issued by the United States, frankly speaking, does not hold water. The number of US&nbsp;citizens coming to China in the first 11 months of this year reached 2.30 million, averaging 70 per 10,000, far more than Chinese visiting the United States. The figures are somehow convincing as to whether it is safe or not in China," Lu said.

Lu said:"The United States has, in recent years, by crook or by hook, set up obstacles to the entry of Chinese citizens and conduct unwarranted inspections. This is what the United States should pay attention to and correct. We hope that the United States would do more things that are conducive to the exchange and mutual trust between the people of the two countries but not the opposite."

The China travel advisory issued by the United States does not hold water, said a spokesman of China's ministry of foreign affairs on Friday. The spokesman, Lu Kang, made the remarks when commenting on the renewed travel advisory by the US State Department earlier on Thursday.

The China travel advisory issued by the United States does not hold water, said a spokesman of China's ministry of foreign affairs on Friday. The spokesman, Lu Kang, made the remarks when commenting on the renewed travel advisory by the US State Department earlier on Thursday. The advisory says that US citizens must exercise caution against China's use of "exit ban" that would prohibit US citizens from leaving China. Lu said that China always welcomes foreign citizens, including those of the United States, to visit China and protects by law their safety and legitimate rights and interests in China, including the freedom of entry and exit. "We hope that foreign citizens in China respect and abide by Chinese laws," Lu said. "Here, I would like to point out that, China's judicial organs have always adhered to justice and law in handling cases involving foreign citizens suspected of law violations and crimes and protect them by law all their legitimate rights and interests. The travel advisory issued by the United States, frankly speaking, does not hold water. The number of US citizens coming to China in the first 11 months of this year reached 2.30 million, averaging 70 per 10,000, far more than Chinese visiting the United States. The figures are somehow convincing as to whether it is safe or not in China," Lu said. Lu said:"The United States has, in recent years, by crook or by hook, set up obstacles to the entry of Chinese citizens and conduct unwarranted inspections. This is what the United States should pay attention to and correct. We hope that the United States would do more things that are conducive to the exchange and mutual trust between the people of the two countries but not the opposite."

Travel advisory issued by US does not hold water: China

Chinese foreign ministry spokesman <a href="http://www.wionews.com/world/after-jim-mattis-patrick-shanahan-takes-pentagon-helm-at-critical-time-187442">Lu Kang said on Thursday&nbsp;that Beijing</a> values the current relations between the American and Chinese militaries, after acting US secretary of defence Patrick Shanahan reportedly told civilian leaders of the US military to focus on "China, China, China".

Speaking at a regular news conference in Beijing, Lu cast doubt on the validity of the reported comments by Shanahan before adding that the future of the two countries' military relations was for Beijing and Washington to decide.

"If what we mutually seek is a partner, then we will likely get a partner. If what we seek is an adversary, then we will certainly get an adversary," Lu said when asked about Shanahan's remarks.

Relations between the world's two largest economies have plumbed new depths under US President Donald Trump, with a trade war and disagreements over Taiwan and the South China Sea.

"In principle, all I want to say is that, for China, what we are pursuing is a national defence policy based on defence. We also prioritise developing cooperation between our armed forces and those of other countries, including America's," the foreign ministry spokesman said, adding, "We believe that this is conducive to promoting mutual trust and peace, enhancing relations between the two countries and contributing to world peace and stability.

"During the process of communications, the clear information that we have obtained from the US, is that the US - similar to China - highly prioritises the relations between the two militaries and hopes to work towards turning the relationship between the two militaries into a stable element of the relations between our two countries," Lu added.

Chinese foreign ministry spokesman Lu Kang said on Thursday that Beijing values the current relations between the American and Chinese militaries, after acting US secretary of defence Patrick Shanahan reportedly told civilian leaders of the US military to focus on "China, China, China".

Chinese foreign ministry spokesman Lu Kang said on Thursday that Beijing values the current relations between the American and Chinese militaries, after acting US secretary of defence Patrick Shanahan reportedly told civilian leaders of the US military to focus on "China, China, China". Speaking at a regular news conference in Beijing, Lu cast doubt on the validity of the reported comments by Shanahan before adding that the future of the two countries' military relations was for Beijing and Washington to decide. "If what we mutually seek is a partner, then we will likely get a partner. If what we seek is an adversary, then we will certainly get an adversary," Lu said when asked about Shanahan's remarks. Relations between the world's two largest economies have plumbed new depths under US President Donald Trump, with a trade war and disagreements over Taiwan and the South China Sea. "In principle, all I want to say is that, for China, what we are pursuing is a national defence policy based on defence. We also prioritise developing cooperation between our armed forces and those of other countries, including America's," the foreign ministry spokesman said, adding, "We believe that this is conducive to promoting mutual trust and peace, enhancing relations between the two countries and contributing to world peace and stability. "During the process of communications, the clear information that we have obtained from the US, is that the US - similar to China - highly prioritises the relations between the two militaries and hopes to work towards turning the relationship between the two militaries into a stable element of the relations between our two countries," Lu added.

Watch: After Shanahan's dig, China says pursuing policy based on defence

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