China Trade Talks End in an Impasse

Commerce Secretary To Press China To Buy As Allies Seethe Over Tariffs

U.S. Hints at China Talks Progress as Trump Riles Trade Allies

Ross gave no details at the start of his meeting with China's top economic official, Vice Premier Liu He, at the Diaoyutai State Guesthouse. "China-US trade negotiations have to dig up the two sides' greatest number of common interests, and can not be tilted toward unilateral US interests".

China said Sunday that trade progress with the United States in trade would be wiped out if tariffs are imposed.

"China is willing to sit down and negotiate - the country does have a need to import more consumer goods and natural gas", he said. "Our established rhythm will not change", Xinhua said.

But at the same time, it warned that the outcome of the talks should be "based on the prerequisite that the two parties meet each other halfway and will not engage in a trade war".

Mnuchin, speaking at a G7 finance leaders meeting in Canada where he was the target of USA allies' anger over steel and aluminium tariffs, said the China talks would cover other issues, including the Trump administration's desire to eliminate Chinese joint venture requirements and other policies that effectively force technology transfers.

Trump's announcement that he wanted to proceed with tariffs on China came less than two weeks after the two countries had said they were putting threats of tariffs on hold while they continued negotiating.

"Tariffs and expanding exports - the United States can't have both", it said.

"Despite the potential negative repercussions for both economies, the risk of a full-blown China-U.S. trade war, with tariffs and other trade sanctions being imposed by both sides, has risen significantly".

There was no immediate comment from the United States delegation.

Wilbur Ross sounded upbeat on Sunday after having dinner the previous evening with China's Vice-Premier Liu He. The talks were focussed on getting China to move ahead with its recent promises to increase energy and farm imports from the U.S.

But US Treasury Secretary Steven Mnuchin denied that the US had abandoned leadership in the global economy and said he had passed on the other countries' strong feelings to Mr Trump.

The warning came after the latest round of trade talks ended inconclusively in Beijing. Treasury Secretary Steven Mnuchin, who announced the tariff truce with China, said at the G7 summit in Canada that the U.S. was pushing for "structural changes" to the Chinese economy.

"But I also fundamentally believe that if there are structural changes that allow our companies to compete fairly, by definition, that will deal with the trade deficit alone". He also pushed back against the argument that Canadian steel poses a US security threat.

The European Union lodged a complaint with the World Trade Organisation last week over China's technology transfer practices, targeting a similar concern to that which has prompted the Trump administration's more unorthodox use of national security law to trigger punitive tariffs against China.

That might alienate allies who share complaints about Chinese technology policy and a flood of low-cost steel, aluminum and other exports they say are the result of improper subsidies and hurt foreign competitors.

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