MNI INTERVIEW: China Think Tank Urges US-China Negotiations

     BEIJING (MNI) - China and the U.S. should restart trade talks to forestall

a deepening of the trade war between the two economies, the president of a

Chinese think tank told MNI in an interview. 

     "The two countries should sit down and negotiate," said Wang Huiyao,

president of the Center for China and Globalization (CCG), a Beijing-based think

tank which delivers policy research and recommendation for the government. 

     However, U.S. President Donald Trump's constant verbal attacks against

China and his shifting demands create hurdles for both sides to resume talks,

Wang said.

     The Trump administration indicated this week that it is considering raising

the tariff rate on $200 billion-worth of Chinese goods to 25% from 10%. The U.S.

Department of Commerce on Wednesday also slapped export control restrictions on

44 Chinese companies on national security grounds. 

     But Wang is positive about outlook of the ongoing trade spat if both sides

could come together at the negotiation table.

     --COLD WAR MENTALITY

     "Both sides will come to a truce from the trade spat," if they overcome the

biggest hurdles, which are the populist sentiments on both sides, said Wang. The

U.S. must give up on its "cold-war mentality," he said.

     If the Trump administration implements the additional tariffs, China may

not necessarily retaliate with just tariffs but could also choose to use other

cards, he said.

     As the U.S., the EU and Japan "may sooner or later form a free-trade

alliance", Wang Huiyao suggested that Beijing speed up collaboration with other

trading partners.

     --GLOBAL PARTNERS

     "The U.S. is now trying to win support and allies, such as mending fences

with Japan and the EU; China could start some more initiatives, as we can't sit

and wait passively," he stated.

     Wang said China could continue to nurture relations with Japan, such as by

signing up to the Comprehensive and Progressive Agreement for Trans-Pacific

Partnership(CPTPP).

     China could also strengthen ties with the EU and accelerate the

establishment of a free trade zone with India, he advised.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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

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