MNI INTERVIEW: Rush for Trade Deal Not China Goal: Researcher

--China Concerned With Final Trade Outcome, Not Speed Of Talks: Bai

     BEIJING (MNI) - China may not be as concerned with the speed as with the

final outcome of moves to break the trade deadlock between Beijing and

Washington, despite increased pressure from the U.S. as tensions escalate, a

researcher at a Ministry of Commerce (MOFCOM) run think-tank said in an

interview with MNI.

     "The person who tied the bell should untie it," said Bai Ming, deputy

director of the Institute of International Market at the Chinese Academy of

International Trade and Economic Cooperation, a MOFCOM research body, inferring

the U.S. should be the side to end the trade war.

     "China's goal is a win-win outcome for both China and the U.S. rather than

making compromises," Bai told MNI, adding China will not sacrifice its core

interests, especially the right to move forward efforts to upgrade and

restructure its economy and high-tech development.

     "What we hope for is a settlement in which interests of both China and the

U.S. would be maximized, instead of the U.S. wins and we lose; that's 'a treaty

signed under coercion,'" he said, using a phrase that resonates with historical

significance in Beijing.

     Current debate in China, at least in the government censored mainstream

media, is full of nationalistic fervour, making it unlikely China will concede

ground to a western power whilst seeking greater influence globally. As such,

China's government has stated President Donald Trump's carrot-and-stick strategy

is not working and will not work.

     --NO RETREAT

     The Chinese government and state media in recent days have stated China

will not retreat from the trade war, stressing challenges can be turned into

opportunities for high-quality growth.

     "We will not be aloof facing the U.S. tariff action," Bai said, stressing

China may not immediately hit back at the next U.S. move, "but we will retaliate

at a time when we think it's most appropriate."

     The Trump administration has signalled that it is open to negotiations with

China to resolve trade conflicts, but has stepped up sanction measures at the

same time. Last week, the administration announced a hike in the tariff rate to

25% from 10% on a further $200 billion of Chinese goods, with U.S. tariffs on

China now totalling $250 billion -- about half of China's goods exports to the

U.S. in 2017.

     Bai Ming expressed doubt on U.S. officials' willingness to resume trade

talks, which indicates increasing mistrust between the world's two largest

economies.

     "The U.S. said it wants to negotiate, but it has not shown sincerity," Bai

said. "If we have talks now, it may just be repeating each other's original

stances onto the negotiating table." 

     Bai noted China remains doubtful over U.S. credibility after the Trump

administration's previous flip-flop following their Washington joint agreement

reached in mid-May.

     --"PRECISE TARGET"

     China's countermeasure to the U.S. trade action would integrate

quantitative and qualitative measures, Bai told MNI, adding the key is a

"precise target and effective countermeasures."

     "During this process, we want the U.S. to return to the negotiating table

as peacefully solving the trade conflicts through talks is the best outcome,"

Bai said, "But we will let the U.S. know there are costs for exercising trade

protectionism."

     Chinese authorities announced last Friday a list of $60 billion in duties

on U.S. goods, which would be effective should Washington follow through on

their latest tariff threat.

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

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

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