MNI EXCLUSIVE: China-US May Sign Trade Pact Despite APEC Snag

     BEIJING (MNI) - The cancellation of the APEC summit next month in Chile may

not derail the apparent progress in trade talks between China and the U.S., as

the two countries could still sign an initial agreement elsewhere, Chinese

advisors close to the government told MNI.

     "Both sides will continue to work with each other, and will consider

another location for signing the agreement," said Wei Jianguo, a former vice

minister of Commerce. The cancellation won't affect the deal signing, he said in

an interview on Thursday.

     U.S. President Donald Trump said he hoped to sign a "phase one" deal with

Chinese leader Xi Jinping during the Asia-Pacific Economic Cooperation leader

summit in Chile on Nov 16 to 17. Chilean officials cancelled the summit on

Wednesday because of mass protests. 

     "A key signal is whether the U.S. will send someone to talk about it in the

near future," said another former commerce official, declining to be identified

in order to speak candidly. "As both sides have recently shown some sincerity,

we should take the opportunity to sign first, or the agreement may fall further

away," the former official said. 

     --TALKS PROGRESSING: MINISTRY

     Lead negotiators from both sides will speak on phone again this Friday,

China's commerce ministry said in a statement on Thursday, noting "talks are

progressing smoothly, as both sides have maintained close communication."

     "The cancellation of the summit may have some impact in the short term, but

in the long run, it should not affect the overall situation," said Wang Huiyao,

President of the Center for China and Globalization (CCG), a state-sponsored

think tank.

     Some advisors suggested in speaking to MNI that the agreement may be signed

instead by Vice Premier Liu He and his U.S. counterparts, rather than the two

presidents. 

     --ELECTORAL BOOST

     However, Mei Guanqun, deputy researcher at the China Center for

International Economic Exchange, said President Trump is unlikely to give up the

chance of signing a deal face-to-face with China to give himself an electoral

boost.

     It isn't difficult to rearrange the deal signing, and the two leaders need

to meet and confirm what's for the next phase of the negotiation, Mei said. The

signing may take place in a third-party country to ensure equal positions for

both sides, according to Mei.

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

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