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China says US must show 'sincerity' for trade talks to continue

File photo. Photograph:( Reuters )

Agencies Beijing, China May 23, 2019, 05.50 PM (IST)

China warned the United States on Thursday that it must show "sincerity" if trade talks are to continue between the world's top two economies, stressing that Beijing would "not yield" on major principles.

"If the US wants to continue to talk, it should show sincerity and correct its mistaken actions. Only on the basis of equality and respect can the negotiations have the chance of continuing," commerce ministry spokesman Gao Feng said at a press briefing.

The world's two largest economies have escalated tariff increases on each other's imports after talks broke down to resolve their dispute, and the acrimony has intensified since Washington last week blacklisted Chinese telecom equipment company Huawei Technologies Co Ltd.

The listing, which curbs Huawei's access to US-made components, is a potentially devastating blow for the company that has rattled technology supply chains and investors, and saw several mobile carriers on Wednesday delay the launch of new Huawei smartphone handsets.

No further trade talks between top Chinese and US negotiators have been scheduled since the last round ended on May 10, the same day President Donald Trump increased tariffs on $200 billion worth of Chinese goods and took steps to levy duties on all remaining Chinese imports.

Negotiations between the United States and China have stalled since early May, when Chinese officials sought major changes to the text of a proposed deal that the Trump administration says had been largely agreed.

However, Chinese Ambassador to the United States Cui Tiankai, speaking to the Fox News Channel, said on Tuesday that Beijing was still open for talks.

Repercussions of the blacklisting mounted for Huawei, with some mobile operators, including the Ymobile unit of Japan's Softbank Corp and rival KDDI Corp putting launch plans for Huawei's new P30 Lite smartphone on hold.

Another big Chinese tech firm, video surveillance equipment maker Hikvision Digital Technology Co Ltd, could also face limits on its ability to buy US technology, the New York Times reported, citing people familiar with the matter, sending the firm's Shenzhen-listed shares down 5.54 per cent.

 

Story highlights

China warned the United States on Thursday that it must show "sincerity" if trade talks are to continue.