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Thousands of companies leaving China, that is why they want to make a deal: Trump

US President Donald Trump takes part in a welcoming ceremony with China's President Xi Jinping. Photograph:( Reuters )

WION Web Team Washington Jul 15, 2019, 05.43 PM (IST)

As US and China continue talks on ways to end the trade war, President Trump in a tweet said today that US tariffs have had a major effect on companies wanting to leave China for "non-tariffed countries" with "thousands leaving" the country.

"We are receiving billions of dollars in tariffs from China, with possibly much more to come. These tariffs are paid for by China devaluing and pumping, not by the US taxpayer!" the US president said in a tweet.

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"Thousands of companies are leaving. This is why China wants to make a deal with the US and wishes it had not broken the original deal in the first place," Trump added.

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At the G20 summit in Japan last month, Trump had vowed not to impose new tariffs on China. Trump had said the trade issue was "back on track" during the summit. The US president had said he was ready for "historic deal" with China. President Xi told Trump that "dialogue" was better than confrontation.

However, on Monday in a tweet, Trump said: "China’s second-quarter growth is the slowest it has been in more than 27 years. The United States tariffs are having a major effect on companies wanting to leave China for non-tariffed countries."

Trump's latest attack on China comes even as White House officials had informed that US officials were set for face-to-face trade talks in China. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to go to Beijing to resume talks which have seen little progress over larger issues.

Reports said Lighthizer and Mnuchin had spoken with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan over the phone, but details of the conversation were not available.

Trump had earlier accused China of reneging on its commitments, however, hopes were revived after Trump met President Xi in Osaka, Japan with both leaders agreeing to remain "fully engaged" on the trade issue.