web analytics
a

Facebook

Twitter

Copyright 2015 Libero Themes.
All Rights Reserved.

8:30 - 6:00

Our Office Hours Mon. - Fri.

703-406-7616

Call For Free 15/M Consultation

Facebook

Twitter

Search
Menu
Westlake Legal Group > Liu He (1952- )

U.S. and China Agree to Resume Trade Talks, Sending Markets Higher

Westlake Legal Group 04chinatrade-facebookJumbo U.S. and China Agree to Resume Trade Talks, Sending Markets Higher United States International Relations United States Trump, Donald J Politics and Government Mnuchin, Steven T Liu He (1952- ) Lighthizer, Robert E International Trade and World Market Economic Conditions and Trends Customs (Tariff) China

SHANGHAI — The United States and China will hold trade talks in Washington early next month, officials from both countries said on Thursday, but new tariffs will make it difficult to find a way to end their economic clash.

Liu He, a top Chinese economic official and Beijing’s top trade negotiator, will travel to Washington in early October, state media said. Mr. Liu spoke on Thursday morning with Robert E. Lighthizer, the United States trade representative, and Steven Mnuchin, the United States Treasury secretary. Mr. Lighthizer’s office said that deputy-level meetings would take place ahead of the talks.

Stocks around the world rose following the news that talks would resume. Early trading on Wall Street was also up.

If held as scheduled, the talks would take place after new American tariffs kick in, which could make it difficult for the two sides to reach a deal. President Trump has said he would raise tariffs to 30 percent from the current 25 percent on $250 billion in Chinese goods. Those tariffs cover everything from cars to aircraft parts.

On Sunday, Washington began charging a 15 percent tax on more than $100 billion worth of Chinese imports. Beijing retaliated with its own increased tariffs. Both countries plan to impose still more tariffs in December, barring a breakthrough in talks.

Already, pessimism had been growing on both sides of the Pacific Ocean about the possibility of a trade deal before the United States presidential elections next year. The mounting tariffs have rattled global markets and set off fears over world economic growth.

On Thursday, the S&P 500 jumped following news of the talks.

The rise reflects a sense of relief among investors that the two sides, which have recently been seen as far apart in negotiations, may once again seek to find a way to de-escalate a conflict that has raised global economic concerns and has injected uncertainty into the markets.

More than half of respondents to Bank of America’s monthly survey of global fund managers in August cited a worsening trade war as the top “tail risk” — a remote, but potentially deeply destabilizing threat — facing markets.

Over the last year, the potential fallout of the trade battle surpassed previous worries that troubled these professional investors, such as the chance that the Federal Reserve could tighten interest rates too far or a sharp slowdown in Chinese growth could stifle global growth.

At times this year, the stock market has suffered bouts of extreme volatility, first in May and again last month, when previous cease-fires in the battle between the United States and China broke down.

Data on mutual funds and E.T.F.s has shown money consistently flowing out of the stock market and into the bond market, often considered a safe haven for investors, which is also enjoying a strong year.

Businesses in both the United States and China have begun to express concern about a trade war that has dragged on for more than a year. American manufacturing activity contracted for the first time in three years because of slowing export orders amid the trade dispute, data showed on Wednesday.

Chinese factory activity, meanwhile, contracted for three months this summer before ticking back up slightly in data released this week. Its manufacturing sector has suffered layoffs and factory shutdowns from the trade war and as its economy grows at its slowest pace in three decades.

“When I speak to C.E.O.s of leading Chinese and global companies, everyone is fretting about what the latest escalations mean for their businesses in the short term, and more worrisome, for their long-term strategy and investment plans,” said Fred Hu, founder of the investment firm Primavera Capital Group and former head of Goldman Sachs’s greater China business.

The two sides show little sign of backing down, however. Mr. Trump has gambled that China’s softening economy will put pressure on Beijing’s leaders to back down. Speaking with reporters on Wednesday, Mr. Trump cited the country’s slowdown, which he called, inaccurately, “the worst year they’ve had in 57 years.”

“And they want to make a deal,” Mr. Trump said. “We’ll see what happens.”

For their part, China’s leaders believe their own efforts to quell China’s dependence on debt are mostly responsible for the slowdown, and that they could reverse course if needed to bolster growth.

Next month’s talks would be the 13th time that senior-level trade negotiators have met. American negotiators traveled to Shanghai in July to meet briefly with their Chinese counterparts and left with an agreement to meet again in Washington on Sept. 1.

But the plans were disrupted when, one day after negotiators returned home, Mr. Trump said the United States would impose a 10 percent tariff on $300 billion worth of Chinese goods on Sept. 1, once again escalating trade tensions.

State controlled media has contended that the trade war is hurting American consumers more than Chinese companies and citizens. “The White House lifted a rock, which fell on the feet of the America public,” the Global Times, a nationalistic tabloid, wrote in a Sept. 1 editorial after the latest round of tariffs set in.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

U.S.-China Trade Talks to Resume, but New Tariffs Could Complicate Them

Westlake Legal Group 04chinatrade-facebookJumbo U.S.-China Trade Talks to Resume, but New Tariffs Could Complicate Them United States International Relations United States Trump, Donald J Politics and Government Mnuchin, Steven T Liu He (1952- ) Lighthizer, Robert E International Trade and World Market Economic Conditions and Trends Customs (Tariff) China

SHANGHAI — The United States and China will hold trade talks in Washington early next month, officials from both countries said on Thursday, but new tariffs will make it difficult to find a way to end their economic clash.

Liu He, a top Chinese economic official and Beijing’s top trade negotiator, will travel to Washington in early October, state media said. Mr. Liu spoke on Thursday morning with Robert E. Lighthizer, the United States trade representative, and Steven Mnuchin, the United States Treasury secretary. Mr. Lighthizer’s office said that deputy-level meetings would take place ahead of the talks.

If held as scheduled, the talks would take place after new American tariffs kick in, which could make it difficult for the two sides to reach a deal. President Trump has said he would raise tariffs to 30 percent from the current 25 percent on $250 billion in Chinese goods. Those tariffs cover everything from cars to aircraft parts.

On Sunday, Washington began charging a 15 percent tax on more than $100 billion worth of Chinese imports. Beijing retaliated with its own increased tariffs. Both countries plan to impose still more tariffs in December, barring a breakthrough in talks.

Already, pessimism had been growing on both sides of the Pacific Ocean about the possibility of a trade deal before the United States presidential elections next year. The mounting tariffs have rattled global markets and set off fears over world economic growth.

Businesses in both the United States and China have begun to express concern about a trade war that has dragged on for more than a year. American manufacturing activity contracted for the first time in three years because of slowing export orders amid the trade dispute, data showed on Wednesday.

Chinese factory activity, meanwhile, contracted for three months this summer before ticking back up slightly in data released this week. Its manufacturing sector has suffered layoffs and factory shutdowns from the trade war and as its economy grows at its slowest pace in three decades.

“When I speak to C.E.O.s of leading Chinese and global companies, everyone is fretting about what the latest escalations mean for their businesses in the short term, and more worrisome, for their long-term strategy and investment plans,” said Fred Hu, founder of the investment firm Primavera Capital Group and former head of Goldman Sachs’s greater China business.

The two sides show little sign of backing down, however. Mr. Trump has gambled that China’s softening economy will put pressure on Beijing’s leaders to back down. Speaking with reporters on Wednesday, Mr. Trump cited the country’s slowdown, which he called, inaccurately, “the worst year they’ve had in 57 years.”

“And they want to make a deal,” Mr. Trump said. “We’ll see what happens.”

For their part, China’s leaders believe their own efforts to quell China’s dependence on debt are mostly responsible for the slowdown, and that they could reverse course if needed to bolster growth.

Next month’s talks would be the 13th time that senior-level trade negotiators have met. American negotiators traveled to Shanghai in July to meet briefly with their Chinese counterparts and left with an agreement to meet again in Washington on Sept. 1.

But the plans were disrupted when, one day after negotiators returned home, Mr. Trump said the United States would impose a 10 percent tariff on $300 billion worth of Chinese goods on Sept. 1, once again escalating trade tensions.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

U.S.-China Trade Talks to Resume, but New Tariffs Could Complicate Them

Westlake Legal Group 04chinatrade-facebookJumbo U.S.-China Trade Talks to Resume, but New Tariffs Could Complicate Them United States International Relations United States Trump, Donald J Politics and Government Mnuchin, Steven T Liu He (1952- ) Lighthizer, Robert E International Trade and World Market Economic Conditions and Trends Customs (Tariff) China

SHANGHAI — The United States and China will hold trade talks in Washington early next month, officials from both countries said on Thursday, but new tariffs will make it difficult to find a way to end their economic clash.

Liu He, a top Chinese economic official and Beijing’s top trade negotiator, will travel to Washington in early October, state media said. Mr. Liu spoke on Thursday morning with Robert E. Lighthizer, the United States trade representative, and Steven Mnuchin, the United States Treasury secretary. Mr. Lighthizer’s office said that deputy-level meetings would take place ahead of the talks.

If held as scheduled, the talks would take place after new American tariffs kick in, which could make it difficult for the two sides to reach a deal. President Trump has said he would raise tariffs to 30 percent from the current 25 percent on $250 billion in Chinese goods. Those tariffs cover everything from cars to aircraft parts.

On Sunday, Washington began charging a 15 percent tax on more than $100 billion worth of Chinese imports. Beijing retaliated with its own increased tariffs. Both countries plan to impose still more tariffs in December, barring a breakthrough in talks.

Already, pessimism had been growing on both sides of the Pacific Ocean about the possibility of a trade deal before the United States presidential elections next year. The mounting tariffs have rattled global markets and set off fears over world economic growth.

Businesses in both the United States and China have begun to express concern about a trade war that has dragged on for more than a year. American manufacturing activity contracted for the first time in three years because of slowing export orders amid the trade dispute, data showed on Wednesday.

Chinese factory activity, meanwhile, contracted for three months this summer before ticking back up slightly in data released this week. Its manufacturing sector has suffered layoffs and factory shutdowns from the trade war and as its economy grows at its slowest pace in three decades.

“When I speak to C.E.O.s of leading Chinese and global companies, everyone is fretting about what the latest escalations mean for their businesses in the short term, and more worrisome, for their long-term strategy and investment plans,” said Fred Hu, founder of the investment firm Primavera Capital Group and former head of Goldman Sachs’s greater China business.

The two sides show little sign of backing down, however. Mr. Trump has gambled that China’s softening economy will put pressure on Beijing’s leaders to back down. Speaking with reporters on Wednesday, Mr. Trump cited the country’s slowdown, which he called, inaccurately, “the worst year they’ve had in 57 years.”

“And they want to make a deal,” Mr. Trump said. “We’ll see what happens.”

For their part, China’s leaders believe their own efforts to quell China’s dependence on debt are mostly responsible for the slowdown, and that they could reverse course if needed to bolster growth.

Next month’s talks would be the 13th time that senior-level trade negotiators have met. American negotiators traveled to Shanghai in July to meet briefly with their Chinese counterparts and left with an agreement to meet again in Washington on Sept. 1.

But the plans were disrupted when, one day after negotiators returned home, Mr. Trump said the United States would impose a 10 percent tariff on $300 billion worth of Chinese goods on Sept. 1, once again escalating trade tensions.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

U.S.-China Trade Talks to Resume, but New Tariffs Could Complicate Them

Westlake Legal Group 04chinatrade-facebookJumbo U.S.-China Trade Talks to Resume, but New Tariffs Could Complicate Them United States International Relations United States Trump, Donald J Politics and Government Mnuchin, Steven T Liu He (1952- ) Lighthizer, Robert E International Trade and World Market Economic Conditions and Trends Customs (Tariff) China

SHANGHAI — The United States and China will hold trade talks in Washington early next month, officials from both countries said on Thursday, but new tariffs will make it difficult to find a way to end their economic clash.

Liu He, a top Chinese economic official and Beijing’s top trade negotiator, will travel to Washington in early October, state media said. Mr. Liu spoke on Thursday morning with Robert E. Lighthizer, the United States trade representative, and Steven Mnuchin, the United States Treasury secretary. Mr. Lighthizer’s office said that deputy-level meetings would take place ahead of the talks.

If held as scheduled, the talks would take place after new American tariffs kick in, which could make it difficult for the two sides to reach a deal. President Trump has said he would raise tariffs to 30 percent from the current 25 percent on $250 billion in Chinese goods. Those tariffs cover everything from cars to aircraft parts.

On Sunday, Washington began charging a 15 percent tax on more than $100 billion worth of Chinese imports. Beijing retaliated with its own increased tariffs. Both countries plan to impose still more tariffs in December, barring a breakthrough in talks.

Already, pessimism had been growing on both sides of the Pacific Ocean about the possibility of a trade deal before the United States presidential elections next year. The mounting tariffs have rattled global markets and set off fears over world economic growth.

Businesses in both the United States and China have begun to express concern about a trade war that has dragged on for more than a year. American manufacturing activity contracted for the first time in three years because of slowing export orders amid the trade dispute, data showed on Wednesday.

Chinese factory activity, meanwhile, contracted for three months this summer before ticking back up slightly in data released this week. Its manufacturing sector has suffered layoffs and factory shutdowns from the trade war and as its economy grows at its slowest pace in three decades.

“When I speak to C.E.O.s of leading Chinese and global companies, everyone is fretting about what the latest escalations mean for their businesses in the short term, and more worrisome, for their long-term strategy and investment plans,” said Fred Hu, founder of the investment firm Primavera Capital Group and former head of Goldman Sachs’s greater China business.

The two sides show little sign of backing down, however. Mr. Trump has gambled that China’s softening economy will put pressure on Beijing’s leaders to back down. Speaking with reporters on Wednesday, Mr. Trump cited the country’s slowdown, which he called, inaccurately, “the worst year they’ve had in 57 years.”

“And they want to make a deal,” Mr. Trump said. “We’ll see what happens.”

For their part, China’s leaders believe their own efforts to quell China’s dependence on debt are mostly responsible for the slowdown, and that they could reverse course if needed to bolster growth.

Next month’s talks would be the 13th time that senior-level trade negotiators have met. American negotiators traveled to Shanghai in July to meet briefly with their Chinese counterparts and left with an agreement to meet again in Washington on Sept. 1.

But the plans were disrupted when, one day after negotiators returned home, Mr. Trump said the United States would impose a 10 percent tariff on $300 billion worth of Chinese goods on Sept. 1, once again escalating trade tensions.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

U.S.-China Trade Talks Stumble on Beijing’s Spending at Home

BEIJING — One year ago, when he began a multibillion-dollar trade war with China that shook the global economy, President Trump demanded that Beijing end lavish government spending aimed at making the country a world power in computer chips, robotics, commercial aircraft and other industries of the future.

Today, as the two sides struggle to reach a truce, the Trump administration is finding just how difficult that will be.

Trade talks between the United States and China nearly ground to a halt this past week, and a seemingly intractable dispute over subsidies is a big part of it. Robert E. Lighthizer, the United States trade representative, accused China last Monday of reneging on what he described as “good, firm commitments on eliminating market-distorting subsidies.” Vice Premier Liu He, the leader of China’s negotiating team, said that it was normal for negotiations to have ups and downs, but has also nodded to the subsidies issue in vowing repeatedly over the last several days not to bend on China’s principles.

President Trump on Friday raised tariffs on $200 billion a year worth of Chinese goods, hitting goods leaving China’s shores as of that day. He has directed Mr. Lighthizer to start on Monday the long process for raising tariffs on all Chinese goods.

In talks and in an exchange of documents, Chinese negotiators surprised their American counterparts by calling at the start of this month for numerous changes, people familiar with the negotiations said. While the requests covered everything from intellectual property to currency manipulation, the hardened Chinese stance against limiting government subsidies poses a particular challenge.

The United States wants China to enshrine limits on subsidies in its national laws. China says it will not let a foreign country tell it how to change its laws. A schedule of planned legislation released by Chinese officials on Saturday did not include any of the subsidy-related measures that Washington has sought.

Beijing has long helped its homegrown industries in strategically important areas like jetliners and parts for nuclear reactors. It also supports efforts to build up China’s high-tech industries like microchips and self-driving cars to make sure the economy will stay competitive.

Stopping, or even tracking, China’s subsidies is a difficult task. Many subsidies take the form of cheap loans from government-controlled banks or through other opaque arrangements. Foreign companies also complain that they are often shut out of local government contracts through written and unwritten rules, giving Chinese competitors a strong base at home while they pursue global expansion plans.

ImageWestlake Legal Group merlin_146208684_2d8ceae7-ce5f-4881-924b-77eef9a0c2a2-articleLarge U.S.-China Trade Talks Stumble on Beijing’s Spending at Home World Trade Organization United States Trump, Donald J Liu He (1952- ) International Trade and World Market Customs (Tariff) China

A laboratory at the Innovation Center of Advanced Optoelectronic Chip at Tsinghua University in Tianjin, China. Chinese companies often receive subsidies to help them compete in high-tech fields.CreditReuters

China has agreed to disclose more information about its subsidies and stop those that violate rules under the World Trade Organization, the global trade referee. But the two sides are also at loggerheads over how to interpret those W.T.O. rules, said people familiar with the talks, who asked for anonymity because they were not authorized to speak publicly.

In his news briefing last Monday, Mr. Lighthizer said China’s trade negotiators had made significant, enforceable commitments to the United States, but added that “some people” in China had objected to them, without saying who. China’s trade negotiators are heavily drawn from the ranks of the country’s market-oriented economic reformers and have long been at odds with officials who want greater reliance on heavily subsidized state-owned enterprises.

The Trump administration insists on leaving in place tariffs on imports from heavily subsidized Chinese industries, at least for this year. That would protect the American market in industries that trade hawks within the administration see as strategically crucial.

Chinese officials oppose those tariffs. Mr. Liu told Chinese state-controlled media on Saturday that the Chinese government “believes that tariffs are the starting point for trade disputes between the two sides — if an agreement is to be reached, the tariffs must all be canceled.”

Chad Bown, a senior fellow at the Peterson Institute for International Economics, said that tariffs imposed bilaterally were a poor tool to address a global problem like overcapacity. Even if the United States successfully kept part of the tariffs in place, they would protect only American business at home. Subsidized Chinese business could still compete at home, in Europe and almost everywhere else around the globe, hurting prospects for American exporters.

In the United States, Democrats have been increasingly critical of the Trump administration for not obtaining more trade policy concessions. Yet even some Democrats said they saw limited prospects that China will agree to reduce subsidies.

“To expect the end of essentially a planned or a centralized economy would be awfully ambitious,” Senator Chris Coons, Democrat of Delaware, said in a recent interview in Beijing.

“To be fair the Obama administration got nowhere, the Bush administration got nowhere,” Derek Scissors, a resident scholar at the American Enterprise Institute, said about convincing China to roll back its subsidies. “This is a crucial way the Chinese run their economy.”

If a trade deal does not fully cover subsidies, the United States could resort to unconventional responses. For example, the United States has pushed for an extensive revision of its laws surrounding foreign investments and exports of high-tech products, primarily aimed at China, to try to preserve its commercial and military edge.

President Trump with Liu He, the lead Chinese trade negotiator, last month. Trade talks between the United States and China nearly ground to a halt this past week.CreditSarah Silbiger/The New York Times

The Trump administration has made some progress in the emerging trade deal on other ways the Chinese government props up its industries. Beijing has promised to tell its state-controlled banks to show less favoritism in lending to state-owned enterprises instead of private sector businesses. Beijing has also pledged to open up the bidding for government contracts to foreign companies, instead of reserving them almost completely for Chinese companies.

If China opens up the bidding, “that would actually, genuinely move the market needle on opportunities for foreign companies in China,” said Scott Kennedy, a China economic policy specialist at the Center for Strategic and International Studies.

On the issue of subsidies, China has grown more quiet. Its “Made in China 2025” plan two years ago called for $300 billion in special financing and other assistance for 10 advanced manufacturing industries. China shelved the catchy name for the program in recent months, while expressing determination to continue investing in “high-quality manufacturing.”

China is willing to publicly list and disclose subsidies from its central government, people familiar with the trade talks said. But instead of disclosing these subsidies to the United States, which might be seen by the Chinese public as humiliating, the Chinese government wants to disclose them through the W.T.O., which would then pass on the list to its members.

W.T.O. rules ban governments from helping exporting companies with cash, free land and other easily measured gifts. The rules are somewhat looser on measures like cheap loans from state-controlled banks or efforts to replace imports by fostering domestic production of the same goods.

Beijing has told American negotiators that it will end subsidies if they are breaking W.T.O. rules. But the Chinese national government’s assistance to industries tends to fall into the categories that are hardest to prove as violating W.T.O. rules.

In China, the subsidies more likely to break W.T.O. rules tend to be given to exporters by provincial and local government agencies in China. In the trade talks with the United States, Beijing has agreed to look for provincial and local subsidies that may violate W.T.O. rules, but has been resistant to passing legislation that would abolish them, people familiar with the talks said.

At least a few market-oriented Chinese government officials have worried that broad subsidies might be squandered by companies more interested in taking the government’s money than in creating competitive products. But these critics appear to be a shrinking minority.

Lou Jiwei, a prominent advocate of economic reform and the chairman of China’s social security fund, told The South China Morning Post in early March that the Made in China 2025 plan “wasted taxpayers’ money.”

Mentions of Mr. Lou immediately disappeared from state-controlled media. There followed a cursory statement by the official Xinhua news agency on April 4 that he had been removed from his post at the social security fund. No reason was given.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

U.S.-China Trade Talks to Resume Despite Trump’s Tariff Threat

Westlake Legal Group u-s-china-trade-talks-to-resume-despite-trumps-tariff-threat U.S.-China Trade Talks to Resume Despite Trump’s Tariff Threat United States Politics and Government Politics and Government Liu He (1952- ) International Trade and World Market China
Westlake Legal Group 07chinatrade-facebookJumbo U.S.-China Trade Talks to Resume Despite Trump’s Tariff Threat United States Politics and Government Politics and Government Liu He (1952- ) International Trade and World Market China

China’s top trade negotiator is heading to Washington for two days of trade talks, despite President Trump’s threat to impose new tariffs on hundreds of billions of dollars’ worth of Chinese goods.

China’s Commerce Ministry announced on Tuesday that Vice Premier Liu He, one of the country’s leading economic policymakers, would join a delegation of Chinese officials who will hold further trade talks on Thursday and Friday with the Trump administration. Mr. Liu is a close adviser and confidant of President Xi Jinping, China’s top leader, and his participation could improve the changes of striking a deal.

Still, the atmosphere surrounding the trade talks has shifted dramatically since a week ago, when this week’s discussions were seen as a possible last round before the two sides halted a trade war that has made world markets shudder and thrown a damper on the global economic outlook.

Mr. Liu’s participation was thrown in doubt after Mr. Trump announced in two tweets on Sunday that he would raise American tariffs on Friday to 25 percent from 10 percent for $200 billion a year in Chinese goods. The Trump administration cited what it called backpedaling by Chinese officials during talks held last week in Beijing.

Chinese officials, caught by surprise by Mr. Trump’s threat, were initially uncertain whether Mr. Liu should go ahead with his planned Washington visit this week. China’s Foreign Ministry had said on Monday that a Chinese delegation would go to Washington but did not say when or whether Mr. Liu would participate.

Robert E. Lighthizer, the United States trade representative, and Treasury Secretary Steven Mnuchin had said at a news conference on Monday in Washington that they expected Chinese officials to come to Washington late this week for trade talks, and Mr. Lighthizer said that he expected Mr. Liu to be among them. But the Chinese government was silent until Tuesday about whether Mr. Liu would make the trip.

The decision that Mr. Liu would participate came after a conference call late Tuesday morning, Beijing time, among senior deputies to Mr. Liu and Mr. Lighthizer, people familiar with the trade talks said. They insisted on anonymity because they were not authorized to discuss the talks.

Mr. Mnuchin said on Monday that if the Chinese trade delegation brought a new proposal on Thursday, administration officials would review it and relay it to the president.

Mr. Lighthizer said the administration’s current plan, however, was for the tariff increase to take effect at 12:01 a.m. on Friday.

Before Mr. Trump’s threat on Sunday, the plan had been for Mr. Liu to lead a 100-strong Chinese delegation to Washington for talks that were supposed to begin on Wednesday. The effect of Mr. Trump’s threat was to delay these talks by a day.

Mr. Lighthizer and Mr. Mnuchin said on Monday that when they went to Beijing last week, Chinese officials began retreating from previous offers, and that this continued into last weekend. “There were communications over the weekend that made clear to us that it looked like we were going substantially backwards, and that’s what led to us updating the president,” Mr. Mnuchin said.

The Chinese government has not commented on the administration officials’ accusation that it had rescinded some of its previous offers.

Share prices in China, which had sunk as much as 6 percent on Monday following Mr. Trump’s threat, on Tuesday recovered only a small part of those losses. Brock Silvers, the chief executive of Kaiyuan Capital, a Shanghai-based investment management and advisory firm, said there was little optimism that Mr. Liu could persuade the Trump administration to delay the latest increase in tariffs, at least initially.

”Markets had expected a quick agreement, and now seem shocked by the possibility of a prolonged economic conflict,” he said.

Mr. Lighthizer in September took the necessary legal steps under United States law for raising the tariffs on roughly $200 billion a year in Chinese goods, or nearly two-fifths of Chinese exports to the United States. The original measure last autumn imposed a 10 percent tariff on Sept. 24 and would have increased it to 25 percent on Jan. 1.

Mr. Trump then deferred the Jan. 1 deadline twice as the trade talks seemed to be leading to a deal, before announcing on Sunday that he would go ahead on Friday with the tariff increase.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

China to Send Senior Official to Trade Talks in Washington

Westlake Legal Group 07chinatrade-facebookJumbo China to Send Senior Official to Trade Talks in Washington United States Politics and Government Politics and Government Liu He (1952- ) International Trade and World Market China

China’s Commerce Ministry announced on Tuesday afternoon that Vice Premier Liu He, one of the country’s leading economic policymakers, would join a delegation of Chinese officials traveling to Washington for further trade talks on Thursday and Friday with the Trump administration.

Robert E. Lighthizer, the United States trade representative, and Treasury Secretary Steven Mnuchin had said at a news conference on Monday in Washington that they expected Chinese officials to come to Washington late this week for trade talks. But the participation of Mr. Liu may increase the odds of substantial progress on a deal. Mr. Liu is a close adviser and confidant of President Xi Jinping, China’s top leader.

Mr. Liu’s participation was thrown in doubt after President Trump announced in two tweets on Sunday that he would raise American tariffs on Friday to 25 percent from 10 percent for $200 billion a year worth of Chinese goods. Chinese officials, caught by surprise, were trying to decide whether Mr. Liu should go ahead with his planned Washington visit this week, which had been seen as potentially a final round of talks before the two sides reach a truce.

Mr. Mnuchin said on Monday that if the Chinese trade delegation brought a new proposal on Thursday, administration officials would review it and relay it to the president.

Mr. Lighthizer said that the administration’s current plan, however, is for the tariff increase to take effect at 12:01 a.m. on Friday.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

China to Send Senior Official to Trade Talks in Washington

Westlake Legal Group 07chinatrade-facebookJumbo China to Send Senior Official to Trade Talks in Washington United States Politics and Government Politics and Government Liu He (1952- ) International Trade and World Market China

China’s Commerce Ministry announced on Tuesday afternoon that Vice Premier Liu He, one of the country’s leading economic policymakers, would join a delegation of Chinese officials traveling to Washington for further trade talks on Thursday and Friday with the Trump administration.

Robert E. Lighthizer, the United States trade representative, and Treasury Secretary Steven Mnuchin had said at a news conference on Monday in Washington that they expected Chinese officials to come to Washington late this week for trade talks. But the participation of Mr. Liu may increase the odds of substantial progress on a deal. Mr. Liu is a close adviser and confidant of President Xi Jinping, China’s top leader.

Mr. Liu’s participation was thrown in doubt after President Trump announced in two tweets on Sunday that he would raise American tariffs on Friday to 25 percent from 10 percent for $200 billion a year worth of Chinese goods. Chinese officials, caught by surprise, were trying to decide whether Mr. Liu should go ahead with his planned Washington visit this week, which had been seen as potentially a final round of talks before the two sides reach a truce.

Mr. Mnuchin said on Monday that if the Chinese trade delegation brought a new proposal on Thursday, administration officials would review it and relay it to the president.

Mr. Lighthizer said that the administration’s current plan, however, is for the tariff increase to take effect at 12:01 a.m. on Friday.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Trump Advisers Accuse China of Reneging on Trade Commitments

Westlake Legal Group trump-advisers-accuse-china-of-reneging-on-trade-commitments Trump Advisers Accuse China of Reneging on Trade Commitments United States Politics and Government United States Economy Trump, Donald J Politics and Government Liu He (1952- ) Lighthizer, Robert E Economic Conditions and Trends
Westlake Legal Group 06DC-CHINATRADE-01-facebookJumbo-v3 Trump Advisers Accuse China of Reneging on Trade Commitments United States Politics and Government United States Economy Trump, Donald J Politics and Government Liu He (1952- ) Lighthizer, Robert E Economic Conditions and Trends

WASHINGTON — President Trump’s top economic advisers on Monday accused China of reneging on previous commitments to resolve a monthslong trade war and said Mr. Trump was prepared to prolong the standoff to force more significant concessions from Beijing.

Mr. Trump, angry that China is retreating from its commitments as the sides appeared to be nearing a deal and confident the American economy can handle a continuation of the trade war, will increase tariffs on $200 billion worth of Chinese goods on Friday morning, his top advisers said.

“We’re moving backwards instead of forwards, and in the president’s view that’s not acceptable,” his top trade adviser, Robert Lighthizer, told reporters on Monday. “Over the last week or so, we have seen an erosion in commitments by China.”

Mr. Trump’s last-minute escalation highlights his administration’s difficult political position as it tries to fend off criticism that he has not been sufficiently tough on China. The president is facing pressure to show that the pain of his trade war will be worth it for the companies, farmers and consumers caught in the middle. Mr. Trump’s decision to potentially upend an agreement that many expected to be finalized this week in Washington appears to be a political calculation that staying tough on China will be a better proposition in the 2020 campaign.

Fueling that decision is the president’s growing confidence that his trade policies are bolstering the American economy, without any downside. Mr. Trump and his advisers have seized on strong first-quarter growth in the gross domestic product as vindication that their tough approach to trade is accelerating the economy, and putting the United States in a stronger position than China to withstand any blowback from higher tariffs. Gross domestic product surged past forecasts in the first quarter, rising 3.2 percent on an annual basis in part because of a sharp slowdown in imports.

Steven Mnuchin, the Treasury secretary, attributed the strong growth to Mr. Trump’s economic policies, including on trade.

“There’s no question that some of the trade policies helped in the G.D.P. number,” Mr. Mnuchin said.

While the president and his advisers have interpreted the figures as evidence that his tariffs are reducing the trade deficit and boosting growth, economists have been more skeptical.

“If you look at imports and exports, it jumps around a lot,” said Torsten Slok, the chief economist at Deutsche Bank Securities. “The recent changes we’ve seen in net exports, it’s probably premature to claim credit for that.”

American investors seemed to back Mr. Trump’s position on Monday, as markets opened lower but then largely shrugged off Mr. Trump’s threat to raise tariffs on $200 billion worth of goods to 25 percent on Friday and eventually tax an additional $325 billion worth of Chinese products.

A final trade agreement could still be reached. Mr. Lighthizer and Mr. Mnuchin said on Monday that the Chinese delegation had not canceled travel plans to come to Washington on Thursday and Friday for negotiations.

“We’re not breaking up talks at this point,” Mr. Lighthizer said.

Mr. Mnuchin said the United States would reconsider imposing higher tariffs on China if the negotiations got “back on track.” He added that negotiators had been optimistic in the past about the prospects for a deal and had been planning for a summit meeting between Mr. Trump and President Xi Jinping of China to finalize the deal.

But Mr. Mnuchin said it became “particularly clear over the weekend” that the Chinese had moved negotiations “substantially backwards.”

China, which depends on the United States economy for trade, said on Monday that it still planned to send a delegation to the United States this week for talks, though a spokesman for the Chinese Foreign Ministry declined to specify whether it would include Vice Premier Liu He, who has led the talks for the Chinese.

The threat of additional tariffs poses a major problem for Mr. Xi, who had been counting on a trade deal to keep China’s growth engine humming.

China’s economic growth began to slow last year as Beijing tried to tame the country’s overreliance on lending. Mr. Trump’s initial tariffs last year hurt Chinese manufacturers and consumer confidence, worsening the slowdown. China’s economic slowdown limited Mr. Xi’s options to retaliate against American tariffs and put pressure on him to reach a deal.

In recent months, thanks in part to new lending, China’s slowdown appeared to stabilize. The prospect of a trade deal also increased consumer and investor confidence and led many economists to project that China’s growth would improve.

New tariffs could derail that progress.

“If tariffs are hiked this Friday and new tariffs come soon after that, the biggest negative impact will likely occur in the next few months,” Tao Wang, an economist specializing in China at UBS, said in a research note.

She estimated that a full-blown trade war with the United States could cut China’s economic growth rate by 1.6 to 2 percentage points over the next 12 months. That would be a considerable cut: Last year, China’s economy grew 6.6 percent, according to official figures, and the government has set an official target of 6 to 6.5 percent this year.

On Monday, Mr. Trump repeated his insistence that China rebalance its economic relationship with the United States and end its role as a net exporter of goods.

The decision to up the ante came after Mr. Trump’s trade advisers made a short trip to Beijing last week. Mr. Lighthizer returned from that visit dismayed by China’s refusal to mention commitments it had made to update various Chinese laws in the final text of the trade agreement, people familiar with the situation said. Even Mr. Mnuchin, who has been more optimistic about the prospects of a deal, was dismayed that the Chinese were not doing more to reach an agreement.

Instead, Chinese negotiators had insisted that any concessions would need to be achieved through regulatory and administrative actions, not changes to Chinese law passed through its legislature. The provisions included the forced transfer of technology from American companies to Chinese firms, the people familiar with the negotiations said.

Chinese negotiators have also continued to insist that Mr. Trump lift the tariffs he has placed on $250 billion worth of goods more quickly than the administration wants. With the two sides still disagreeing over issues including how China subsidizes its companies, its restrictions on data transfers, its approvals of genetically modified seeds and rules for foreign cloud computing companies, the president concluded late last week that China’s offers were not good enough.

On Sunday, Mr. Trump’s tariff threats sparked concern among business and industry groups, but drew praise from both sides of the political aisle.

“Hang tough on China, President @realDonaldTrump,” Senator Chuck Schumer of New York, the Democratic leader, said on Twitter.

“Excellent decision by @realDonaldTrump!” Laura Ingraham, a Fox News host, tweeted, which the president retweeted onto his feed. “No other president has had the guts to take on the China challenge.”

Mr. Lighthizer said on Monday that the United States was targeting some “very pernicious actions” by the Chinese, and that reversing them would have an enormous benefit for the American economy and the world. He also pushed back against reports that the evolving agreement would do little to address China’s subsidization of key industries.

Analysts have questioned whether volatility in the stock markets could change the president’s mind. Mr. Trump’s tariff threats caused markets in Asia to plummet Monday morning, but in the United States, the S&P 500 index closed down 0.45 percent, while the Dow Industrial was down just 0.25 percent.

It was unclear whether markets viewed Mr. Trump’s tariff threat merely as a negotiating tactic. The president has turned to tariffs as a source of leverage to bring other negotiations to the close. In talks last year over the North American Free Trade Agreement, Mr. Trump threatened to leave Canada out of the deal entirely and strike a deal with Mexico, a gambit that brought negotiations to a rapid conclusion.

In a note on Monday, Joshua Shapiro, the chief United States economist for MFR, an economic research firm, said his forecast and most others assumed that the United States-China trade talks resulted in no further damage, at a minimum. “Given expectations of an agreement, failure to achieve one would be a serious blow to markets and the economy,” he wrote.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Trump Prepared to Hit China With More Tariffs

Westlake Legal Group 06DC-CHINATRADE-01-facebookJumbo-v3 Trump Prepared to Hit China With More Tariffs United States Politics and Government United States Economy Trump, Donald J Politics and Government Liu He (1952- ) Lighthizer, Robert E Economic Conditions and Trends

WASHINGTON — President Trump, emboldened by ongoing strength in the American economy and angered by China’s attempts to renege on previous commitments, is prepared to prolong his monthslong trade war rather than settle for a weak agreement, his top advisers said Monday.

Mr. Trump’s threat to increase tariffs on $200 billion worth of Chinese goods on Friday morning followed a visit last week by his top advisers to Beijing, in which the Chinese “retreated” on parts of the deal, the advisers said.

“We’re moving backwards instead of forwards, and in the president’s view that’s not acceptable,” Robert Lighthizer, the president’s top trade negotiator, told reporters on Monday.

Mr. Trump on Sunday threatened to hit nearly all of China’s exports to the United States with tariffs. The president was angered by China’s attempt to reverse commitments to essentially codify an agreement to provide American companies with more equal treatment, according to people familiar with the negotiations. The president was also irked by China’s insistence that the United States quickly lift all of the tariffs Mr. Trump had placed on $250 billion worth of imports.

A final trade agreement could still be reached, and China, which depends on the United States economy for trade, said on Monday that it still planned to send a delegation to the United States this week for talks. However, a spokesman for the Chinese Foreign Ministry declined to specify on Monday whether Vice Premier Liu He, who has led the talks for the Chinese, would still travel to the United States for scheduled meetings, instead saying that “the Chinese team is preparing to go to the U.S. for consultations.”

Steven Mnuchin, the Treasury Secretary, said the United States would reconsider imposing higher tariffs on China if the negotiations got “back on track.” He added that negotiators had been optimistic in the past about the prospects for a deal, but that recent interactions with the Chinese had moved negotiations “substantially backwards.”

Mr. Trump’s last-minute warning highlights the difficult political position facing his administration as it tries to convince businesses, lawmakers and consumers that the deal it strikes with China will truly level the playing field and put the United States in a better economic position. He is also facing pressure to show that the pain of his trade war will be worth it for the companies, farmers and consumers caught in the middle.

On Monday, Mr. Trump repeated his insistence that China rebalance its economic relationship with the United States and end its role as a net exporter of goods.

The president’s promise to raise tariffs to 25 percent on Friday and eventually tax another $325 billion worth of Chinese goods sent global markets down on Monday, as investors worried that the trade war could be prolonged indefinitely. Stocks fell sharply after trading opened, with the S&P 500 starting down more than 1 percent. But the market gained ground throughout the trading day. Shortly before 3 p.m., the S&P 500 was down a bit less than 0.5 percent.

The decision to up the ante came after Mr. Trump’s trade advisers returned dismayed by China’s refusal to mention commitments it had made to update various Chinese laws in the final text of the trade agreement.

Instead, Chinese negotiators had insisted that any concessions would need to be achieved through regulatory and administrative actions, not through changes made to Chinese law through its legislature. The provisions included, but were not limited to, the forced transfer of technology from American companies to Chinese firms, the people familiar with the negotiations said.

Chinese negotiators have also continued to insist that Mr. Trump lift the tariffs he has placed on $250 billion worth of goods more quickly than the administration wants. With the two sides still disagreeing over issues including how China subsidizes its companies, its restrictions on data transfers, rules for foreign cloud computing companies and its approvals of genetically modified seeds, the president concluded that China’s offers were not good enough.

Late last week, Mr. Trump and a small circle of advisers decided the United States was in a strong enough economic position to ramp up tariffs on $200 billion worth of Chinese exports. People familiar with the president’s thinking said that he believed that a strong American economy would enable the United States to withstand any blowback from those higher tariffs — including Chinese retaliation — until China was ready to come back to the negotiating table.

His unconventional approach drew accolades from both sides of the political aisle.

“Hang tough on China, President @realDonaldTrump,” Senator Chuck Schumer, the Democratic leader, said on Twitter.

“Excellent decision by @realDonaldTrump!” Laura Ingraham, a Fox News host, tweeted, which the president retweeted onto his feed. “No other president has had the guts to take on the China challenge.”

Advisers to Mr. Trump say he has felt vindicated by a string of positive economic data, in particular the first-quarter gross domestic product, which increased partly as a result of rising exports. While economists have attributed economic growth in the first quarter to a variety of factors, the president and his advisers interpreted the figures as evidence that his tariffs are reducing the trade deficit and boosting growth.

Mr. Trump’s belief that his trade war is not having an economic downside is fueling his insistence that some of the tariffs on China remain in place. But China has insisted that all of the tariffs must come off as part of the deal.

The president has turned to tariffs as a source of leverage to bring other negotiations to the close. In talks last year over the North American Free Trade Agreement, Mr. Trump threatened to leave Canada out of the deal entirely and strike a deal with Mexico, a gambit that brought negotiations to a rapid conclusion.

Yet analysts have questioned whether volatility in the stock markets could change the president’s mind. He has repeatedly referred to stock markets as a kind of scoreboard for his presidency.

In a note on Monday, Joshua Shapiro, the chief United States economist for MFR, an economic research firm, said that his forecast and most others assumed that the United States-China trade talks resulted in no further damage, at a minimum. “Given expectations of an agreement, failure to achieve one would be a serious blow to markets and the economy,” he wrote.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com