MNI: Threats Will Block China-US Trade Talks, Beijing Says

By Iris Ouyang

     BEIJING (MNI) - China will not resume bilateral trade talks while being

threatened by the U.S., Chinese officials said in Beijing Tuesday, claiming

Washington has not shown enough sincerity in the talks to date.

     "The resumption of the high-level China-U.S. trade negotiations completely

depends on the U.S.," said Wang Shouwen, deputy head of the Ministry of Commerce

and one of the main China trade negotiators with the U.S.

     "China is open to negotiations and talks to tackle trade conflicts," Wang

said, but adding that progress will only come when "the U.S. treats China

equally and with mutual respect."

     --TRUST ISSUES

     "The U.S. has put such large-scale trade restrictions (on China)," Wang

stressed. "Putting a knife on China's neck, how can negotiations keep going? It

is not equal negotiations and talks," he added.

     The officials argued the U.S. is increasingly harming both bilateral

relations and the global economy.

     According to Wang, there is a lack of evidence to suggest the U.S. will

keep its promises even if a trade deal is reached, a second concern preventing

China from continuing talks. 

     The U.S. walked away from an agreement both sides reached in Washington

back in May, causing the Chinese government to increasingly doubt the sincerity

of the Trump administration.

     "Only when the U.S. displays sincerity, treating China equally in

negotiations and keeping its promises, can our negotiations head forward," Wang

said.

     --CONSISTANT MESSAGE

     China's tough stance Tuesday is consistent with the position over previous

months; China does not want to be involved in a trade war but is not afraid of

engaging in one if pushed and is is capable of dealing with any negative impacts

on its economy and companies.

     The officials refuted Washington's argument that the U.S. suffers "unfair

trade" with China, suggesting the argument is "groundless and totally misguided"

as the U.S. gains at the higher end of the value chain.

     Chinese officials argued that U.S. trade action is damaging multilateralism

and the global economic recovery after the financial crisis, along with

disrupting global supply chains. They asserted that healthy bilateral relations

between the world's largest economies benefit both sides.

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

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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

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