MNI EXCLUSIVE: Trump China Deal Delay Talk A Tactic: Advisors

     BEIJING (MNI) - China and the U.S. can still sign a phase-one trade deal

before the U.S. election and any comments from President Donald Trump suggesting

otherwise are likely just a negotiating ploy, a senior advisor to the Chinese

government told MNI Tuesday.

     "It is an old trick. Trump imposes pressure before reaching a deal to get a

better negotiation outcome for himself. It is still possible for the two sides

to sign a phase-one deal before the election," said Wei Jianguo, a Vice Chairman

at the Chinese Center for International Economic Exchanges.

     "Judging from what (Trump) said, it is not a 100% certainty. If the deal is

delayed until after the election, there would be more uncertainties," added Wei,

a former vice vcommerce minister.

     Earlier Tuesday, Trump appeared to throw cold water on prospects for an

early deal, telling a news conference in London; "In some ways, I like the idea

of waiting until after the election for the China deal, but they want to make a

deal now and we will see whether or not the deal is going to be right".

     Zhou Xiaoming, who served as deputy Permanent Representative at China's

Permanent Mission to the United Nations Office in Geneva, also saw Trump's

comments as an attempt to increase pressure on China.

     "The comment sounds familiar and it is not new. Trump wants to appear

relaxed, try to grab the initiative of the talks and post a threat, pressure

China make more concessions," he said.

     "But he needs the deal as the U.S.'s economy is slowing down and he needs

China's increasing purchase of its agricultural goods," Zhou added.

     Mei Xinyu, a researcher at Chinese Academy of International Trade and

Economic Cooperation affiliated with the Ministry of Commerce, said the comments

were unlikely to faze Beijing policymakers.

     Mei also questioned the timing of the announcement, noting it would likely

impact U.S. markets more, as it came after the China markets closed for the day,

but ahead of the Wall Street opening.

     --ISSUES OUTSTANDING

     Wei did acknowledge that problems still to be addressed before a deal could

be signed.

     "If the U.S. imposes new tariffs on Dec. 15, China will definitely fight

back, including reconsidering purchases of agricultural goods, as the basic

requirement for China from the talks is removing all additional tariffs," he

said.

     Zhou also saw potential pitfalls ahead. "The Hong Kong issue has broken a

line for China," he said, "generating complicating factors regarding a deal. If

there is no deal before Dec. 15, Trump would probably impose new tariffs. There

would be no surprise that China would retaliate."

     According to Mei, Beijing would battle on if there is no deal, but accepted

a deal "was in China's interest".

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

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

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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