A Chinese official said Wednesday the country was still open to reaching a partial trade deal with the U.S. that may include large purchases of American commodities, but added that success was contingent on Trump halting further tariffs.
Trump last week approved licenses for some American companies to sell nonsensitive goods to Huawei Technologies Co., the New York Times reported, citing people familiar with the move. While Trump committed to the move after meeting President Xi Jinping in June, no licenses have been issued yet.
Still, in the increasingly hostile political climate toward Beijing, it’s not clear how long any truce could last.
“Even if the president agrees to rolling back tariffs, he’s likely to change his mind early next year if the deficit expands again or the Democrats become more effective in criticizing his China policy,” Derek Scissors, a China expert at American Enterprise Institute, said in an interview.
Further Sanctions
The discussions around an interim deal come as the Trump administration this week further ramped up pressure on Beijing by blacklisting Chinese technology firms over their alleged role in oppression in the far west region of Xinjiang, as well as placed visa bans on officials linked to the mass detention of Muslims. At the same time, a fight over free speech between China and the NBA, triggered by a tweet backing Hong Kong’s protesters, has underscored the heated tensions.
According to people familiar with the currency language, the pact -- first announced in February -- largely resembles what the U.S. agreed to in a new trade agreement with Mexico and Canada and also incorporates transparency commitments included in Group of 20 statements.
The U.S.-Mexico-Canada Agreement, which lawmakers in Washington have yet to ratify, says the signatories “should” maintain a market-set exchange rate; refrain from competitive devaluation, including through intervention; and strengthen underlying economic fundamentals in pursuit of economic and currency stability.
This article provided by Bloomberg News.