US, Chinese trade deputies face off in Washington amid deep differences

Negotiations aimed at laying groundwork for high-level talks in early October


Reuters September 19, 2019
Negotiations aimed at laying groundwork for high-level talks in early October. PHOTO: ONLINE

WASHINGTON: US and Chinese deputy trade negotiators were set to resume face-to-face talks for the first time in nearly two months on Thursday as the world's two largest economies try to bridge deep policy differences and find a way out of a bitter and protracted trade war.

The negotiations, on Thursday and Friday, are aimed at laying the groundwork for high-level talks in early October that will determine whether the two countries are working towards a solution or headed for new and higher tariffs on each other's goods.

A delegation of about 30 Chinese officials, led by Vice Finance Minister Liao Min, arrived at the US Trade Representative's (USTR) office near the White House for the talks scheduled to start at 9 am (1300 GMT). Deputy US Trade Representative Jeffrey Gerrish also arrived to represent the United States.

The discussions are likely to focus heavily on agriculture, including US demands that China substantially increase purchases of American soybeans and other farm commodities, a person with knowledge of the planned discussions told Reuters.

Two negotiating sessions over the two days will cover agricultural issues, while just one will be devoted to the strengthening of China's intellectual property protections and the forced transfer of US technology to Chinese firms.

"Sessions on agriculture will get a disproportionate amount of air time," the source said, adding that one of these sessions will also include focus on US President Donald Trump's demand that China cut off shipments of the synthetic opioid fentanyl to the United States.

The president is eager to provide export opportunities for US farmers, a key Trump political constituency that has been battered by China's retaliatory tariffs on US soybeans and other agricultural commodities.

US Commerce Secretary Wilbur Ross, in an interview on Fox Business Network on Thursday, said it remained unclear what China wanted and that "we will find out very, very shortly in the next couple of weeks."

"What we need is to correct the big imbalances, not just the current trade deficit," Ross said. "It's more complicated than just buying a few more soybeans."

US Treasury Secretary Steven Mnuchin, who will participate in the October talks along with USTR Robert Lighthizer and Chinese Vice Premier Liu He, has said that currency issues will be a focus of the new rounds of talks.

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