Chinese President Xi Jinping and President Donald Trump attend the G20 Summit in Osaka on June 29, 2019.
Brandon Smialowsi | AFP | Getty Images
PASING – Expectations are rising for a first-stage trade agreement between China and the US, although it is unclear when leaders on both sides can meet to sign an agreement.
"China wants, on the basis of equal and mutual respect with the United States, to work together to properly settle areas of common concern and to seek a first phase trade agreement," said Goo Feng, spokesman for the Commerce Department. China, at a regular press conference on Thursday, according to
Gao also said that the "foreign rumors" about trade talks were not accurate and noted that the two trade delegations remained in close communication.
On Thursday, Reuters reported, citing sources, that the so-called first-phase agreement between the US and China may not be completed until next year, with Beijing pushing for more tariff reductions and the presidential administration's US Donald Trump pushes back with his own increased
Separately Thursday, Bloomberg reported, citing unnamed sources, that China's leading trade negotiator Liu said during a dinner speech at dinner that he was cautiously optimistic t COMMERCIAL agreement on the first phase of the US. The report adds that Liu said the attendee was "confused" by US requests, while remaining confident that a first phase agreement could be reached.
Trump and Chinese President Xi Jinping are expected to meet on the sidelines of an international meeting in mid-November in Chile until it is canceled due to internal unrest.
Trade tensions between the two largest economies in the world persist for more than a year, with both countries applying billions of dollars worth of goods to the other.
China would like the US to abolish additional tariffs as part of a definitive trade agreement, and Beijing indicated that the repeal of duties was a requirement for a first phase agreement.
Washington would like China to firmly step up its purchases of US agricultural goods Trump also doubts the idea that the US will agree to cut tariffs as part of the original agreement and even threaten more tariffs on China. If no progress is made on trade negotiations, additional US duties on Chinese goods will be set on December 1
Zhang Yangsheng, chief research associate at the Beijing-based China Center for International Economic Exchanges, is optimistic the US and China will reach a first phase agreement, encouraging both sides to do so. Trump must appease the local constituency before the upcoming US election, until China wants a trade war, Giang said in an interview in Mandarin, according to a CNBC translation.
This initial phase of the Zhang transaction also focuses on tariffs rather than structural issues, making it easier to reach an agreement.