WASHINGTON, Oct 8 (NNN-AGENCIES) — Prospects for progress in US-China trade talks dimmed after Washington blacklisted Chinese companies over Beijing’s treatment of predominantly Muslim ethnic minorities, and President Donald Trump said a quick trade deal was unlikely.
The move by the US Commerce Department could deepen divisions between Washington and Beijing at a critical juncture in their 15-month trade war that has roiled financial markets and triggered a slowdown in the global economy.
US and Chinese deputy trade negotiators on Monday launched two days of talks aimed at paving the way later this week for the first minister-level negotiations in months.
The White House officially confirmed that the high-level talks, involving Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, would begin on Thursday.
Trump and his top economic adviser Larry Kudlow spoke in generally upbeat terms about this week’s discussions with China, the first such high-level talks in more than two months, but Trump insisted he would not be satisfied with a partial deal.
“We think there’s a chance we could do something very substantial,” Trump said, referring to minister-level talks scheduled for the end of the week. “I would much prefer a big deal and I think that’s what we’re shooting for.”
The talks are getting underway about a week before US tariffs on US$250 billion worth of Chinese goods are scheduled to rise to 30 per cent from 25 per cent. Trump has said the tariff hike will take effect on Oct 15 if no progress is made in the negotiations.
The two sides have been at loggerheads over US demands that China improve protections of American intellectual property, end cybertheft and the forced transfer of technology to Chinese firms, curb industrial subsidies and increase US companies’ access to largely closed Chinese markets.
Trump launched a new round of tariffs after the last high-level talks in late July failed to result in agricultural purchases or yield progress on substantive issues. China quickly responded with tariff hikes of its own.
As Monday’s talks got underway, the US Agriculture Department reported more soybean exports to China, the latest in a recent flurry of buying by Beijing. China has booked deals for about 3.5 million tonnes of US soybeans since early September.
Beijing had no immediate response on Monday to the Commerce Department’s addition of 28 Chinese public security bureaus and companies to the so-called “Entity List,” but Chinese officials have railed at previous listings of other Chinese firms such as telecommunications giant Huawei Technologies.
The department filing said the “entities have been implicated in human rights violations and abuses in the implementation of China’s campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups.”
US officials said the announcement was not tied to this week’s resumption of trade talks with China. Those listed are barred from buying parts and components from US companies without US government approval. — NNN-AGENCIES
