Published: Mon, September 17, 2018
Worldwide | By Victor Meyer

China won't surrender to U.S. demands in trade talks: state paper

China won't surrender to U.S. demands in trade talks: state paper

The Trump administration may not be fully aligned on the matter, with the US Trade Representative still seeming to want to apply pressure, while Beijing may not be ready to budge on its positions, economist Andrew Polk wrote in the Trivium China newsletter.

However, the last round of talks, between mid-level U.S. and Chinese officials in August, failed to reach any agreement.

"They all found it very fantastic how our specific industry has so much product. on the list and we were able to open up how that affects our industry as a whole", said Tiffany Zarfas Williams who owns the Luggage Shop in Lubbock, Texas.

Beijing has pledged to hit back with five to 25 per cent tariffs on Dollars 60 billion in USA imports in retaliation for any measures from the US.

Chinese Commerce Ministry spokesman Gao Feng said Thursday that the two governments were discussing details for a new round of negotiations.

"The sugar high of the lower taxes and the reduced rules that have fueled the stock market since the president was elected are in jeopardy", said Gary Shapiro, head of the Consumer Technology Association, whose members include IBM Corp and Facebook Inc He warned that some of his members were also considering layoffs.

China, which has accused the United States of trade bullying, has matched the tariffs dollar for dollar.

President Donald Trump is urging his administration to move ahead with slapping tariffs on $200 billion of Chinese goods, according to a person familiar with the plans.

"American companies are suffering both from China's retaliatory tariffs, and - ironically - from US tariffs created to harm the Chinese economy", said the two groups in a statement. And Kudlow cautioned that he could "guarantee nothing" despite communication between Washington and Beijing having "picked up a notch".

News confirmed by White House economic adviser Larry Kudlow that the Trump administration had invited Chinese officials to restart trade talks gave a lift to Asian stocks, including Chinese shares and the yuan currency.

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The invitation comes amid a swelling chorus of opposition to tariffs from American business circles.

The European Union Chamber of Commerce in China released its own survey on Thursday saying the tariffs were causing "significant disruptions" to global supply chains and "seriously impacting" non-Chinese and non-American companies.

And U.S. tech companies can skirt some tariffs by shipping Chinese-made parts directly to other countries for assembly and then importing the finished items into the United States, said Scott Yuschak, equity strategy analyst at SunTrust Advisory Services in Atlanta.

Roughly a third of firms are shifting supply chains out of China, or the United States, and an equal proportion are delaying or cancelling investment decisions, the survey shows.

About half of American firms are making less money, and a similar amount are reporting higher production costs, according to the survey. Some of their employees are paying the price, with 12 percent of firms cutting staff, the report says.

Beijing has issued a list of $60 billion of American products for retaliation if Trump's next tariff hike goes ahead.

China confirmed the offer on Thursday and said it welcomes the talks.

"Chinese customers just see too much uncertainty around buying American and as a result they shift to alternatives", Beebe told the news agency AFP. Over 430 companies responded to the survey. For the time being, some new tariffs have gone into place, or will soon.

Almost two-thirds of the companies that responded have not relocated nor were they considering moving manufacturing facilities away from China.

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