The Trump Administration Pushes Chinese Officials Back to the Negotiating Table
Wednesday, China cautioned the US against “blackmailing and pressuring” it over trade as The Trump Administration pushes officials back to the negotiating table through threats of even higher tariffs.
President Donald Trump’s officials are considering more than 2X’ing planned tariffs on $200-B in Chinese imports. The US has threatened an additional $200-B with levies of 10%, a level the administration may raise to 25% in a Federal Register notice in coming days, one of the people said.
Representatives of US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are having private conversations as they look for ways to reengage in negotiations, according to people who spoke about the deliberations on condition of anonymity.
Holding open door to talks while threatening worse consequences represents another increase in tension in the months-long dust-up between the world’s 2 largest economies over trade. Che conflict centers around the US’s $375-B annual trade deficit with China.
In a sign the trade standoff is reverberating through Chinese politics, the Politburo signaled Tuesday that policy makers will focus more on supporting economic growth amid risks from a campaign to reduce debt and the dispute with President Trump.
The Communique’, which followed a meeting of the country’s most senior leaders led by President Xi Jinping, said the campaign to reduce leverage will continue at a measured pace while improving economic policies to make them more forward-looking, flexible and effective in 2-H of this year.
Chinese stocks and the RMB Yuan extended losses Wednesday afternoon, gaining downward momentum as concern over possible higher US tariffs overwhelmed optimism about Beijing’s pledge to support economic growth.
The RMB Yuan fell against a trade-weighted basket of currencies to a level that’s near the lowest on record, suggesting policy makers are allowing further weakness.
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