Fears of a full-blown trade war between the U.S. and China appear to have been overblown…. with Beijing making a number of concessions recently,… but trade-related tensions are lingering.
It’s amid this uneasy atmosphere that President Trump has decided to accept China’s invitation to send his Treasury Secretary to Beijing for talks aimed at striking a deal acceptable to both sides.
Hong Yoo reports.
U.S President Donald Trump is to send his Treasury Secretary Steven Mnuchin to China next week with the aim of brokering a deal to settle their trade disputes.
The Wall Street Journal reports the visit, that comes at China’s request, is likely to take place from May 3rd to the 4th.
Mnuchin will be joined by U.S. Trade Representative Robert Lighthizer, National Economic Council Director Larry Kudlow and White House trade adviser Peter Navarro.
The two sides have already been holding discussions at a high-level with Munchin sitting down last week with Yi Gang, the governor of China’s central bank, during the IMF and World Bank Spring meeting in Washington.
Both sides said some progress toward a solution was made at that meeting.
The Wall Street Journal reports that the purpose of Mnuchin’s visit to Beijing is to reach a final agreement.
President Trump expressed confidence on Tuesday that the two sides can reach a compromise.
“I think we’ve got a very good chance of making a deal. As you know, they’ve just stated, President Xi, a terrific guy and a friend of mine, but he’s representing China and I’m representing the United States.”
But the U.S delegation is likely to face its own internal difficulties as the group is made up of a mix of moderates and hardliners.
Mnuchin and Kudlow are viewed as the moderates that favor free trade.
Both recently praised Beijing for easing restrictions on automobile imports.
Lighthizer and Navarro, on the other hand, are seen as the hardliners.
Just last month Lighthizer demanded China do much more to reduce its massive trade surplus with the U.S.
Experts say the delegation must work as a team to seal a deal that will satisfy their boss in the White House… all while sidestepping potential pitfalls that could see the two sides resume their destabilizing tit-for-tat tariffs threats.
Hong Yoo, Arirang News.