MNI: Trump Threat Against China Helps U.S. Firms : AmCham

     BEIJING (MNI) - President Donald Trump's latest threat to impose tariffs on

Chinese exports may help gain leverage for U.S. companies operating in China,

the American Chamber of Commerce said Wednesday.

     The tactic is "somewhat effective in getting our Chinese friends to talk

with us and take seriously our concerns," William Zarit, chairman of the U.S.

Chamber of Commerce in China, told MNI.

     However, American businesses in China don't regard the trade gap between

China and the U.S. as a big problem, Zarit said, adding a trade deficit cut is

not what these businesses need.

     "Much of the deficit is determined by the U.S. domestic saving rate and

other factors," he noted.

     The White House on Tuesday surprised China by announcing that it would

continue trade action against the country, reversing a "trade truce" after their

Washington talks in mid-April. The Trump administration said the final list of

tariffs on Chinese products worth $50 billion will be released by June 15, and

investment of Chinese companies and certain exports to China would also be

restricted. 

     American businesses are increasingly concerned about rising trade tensions

between the world's two largest economies, Zarit said, though their operations

and businesses in China have not been hurt so far. As a precaution, U.S.

companies are accelerating diversifying supply sources to counter potential

risks.

     China and the U.S. may focus on discussing trade deficit cut in the next

round of trade negotiations in China this week, and U.S. agricultural officials

are said to participate in the talks together with U.S. Commerce Secretary

Wilbur Ross, Zarit said.

     But Ross is not a core member of the American official delegation

negotiating with China and uncertainties still cloud the third-round trade

talks, Zarit noted.

     U.S. business leaders in China hope the two countries can address the basic

structural differences of their economies, which could take a long time to

tackle, Zarit told MNI.

     The chamber also addressed concerns for their businesses in China, such as

state support for state-owned companies and companies with state influence,

inconsistent and unclear law enforcement, unequal treatment compared with their

Chinese counterparts, and lack of progress in opening up Chinese markets.

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

--MNI Singapore Bureau; +65 8233 2326; email: Asia-Editor@marketnews.com

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