MNI EXCLUSIVE: Should Be No Tariffs If US/China Deal: Advisors

     BEIJING (MNI) - China and the U.S. could reach a deal that would include

the cancelling of all tariffs imposed by Washington since July 2018 if

Presidents Xi Jinpeng and Donald Trump reach an agreement to restart

negotiations this weekend, government advisors told MNI.

     Wang Huiyao, a counsellor to the State Council, said the two sides would be

more practical during fresh negotiations, which would help in securing a deal,

and it would be based on the "90% consensus" between the two sides.

     However, it would be difficult for an agreement to be reached on the

remaining 10% in any agreement at present, he added.

     --DROP TARIFFS

     "As long as the deal is made, the US should remove all tariff on Chinese

goods," Wang noted, although he didn't rule out the possibility that the U.S.

could reimpose tariffs later considering President Trump's changeability.

     Since the trade war started nearly a year ago, Washington has imposed 25%

tariffs on $250 billion worth of Chinese goods, with recent threats to add a 10%

tariff on an additional $325 billion of Chinese exports if talks in Osaka fail.

     Wei Jianguo, former deputy minister at the Ministry of Commerce, echoed

Wang's comments, saying the negotiations would be meaningless if the tariffs

remain, as they were the trigger to the current trade spat.

     Wang, also the president of the Center for China and Globalization (CCG),

called for the two sides to find a resolution via the December 2018 "Argentina

Consensus", when the two leaders agreed a 90-day truce in the levying of further

measures.

     According to the latest note from the CCG, a leading think tank, China

should increase purchases of U.S. imports, while Washington should ease export

controls and lift the ban on telecoms manufacturer Huawei, all to help mitigate

the impact of the trade dispute.

     --NO PRECONDITIONS

     Li Yong, a senior fellow at a Ministry of Commerce think tank, said China's

position remains consistent, willing to see a truce, but it should be based on

"no preconditions".

     The fair treatment of Chinese companies was an important part of the phone

call between the two presidents -- not only about Huawei, but other high-tech

companies as well, including the five Chinese supercomputer companies barred

recently by the U.S., Li said. "We hope the U.S. responds to it," he added.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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