A team of envoys in China will be lead by President Trump’s top economic adviser, Larry Kudlow.
US trade envoys in Beijing to talk about ongoing trade spat
President Trump’s top economic adviser, Larry Kudlow, will lead a team of envoys in China today to mediate the ongoing trade disputes between the two countries.
A key White House complaint is that China forbids US takeovers of Chinese companies and anti-competitive rules for joint-ventures where US companies must transfer technological intellectual property.
Failed talks risks further US-imposed tariffs on China. Trump threatened a new round of $100 billion tariffs on Chinese products, although Kudlow later played down the threat as “proposals”. China will almost certainly retaliate to the imposition of any new tariffs.
For their part, China has accused the US of dumping rubber in the Chinese market and has imposed tariffs on US-imported rubber. Beijing will hold a hearing into the alleged rubber-dumping today.
White House media sources are unclear what would constitute a “good deal” for Trump. However, Kudlow’s team have stated their aim is to open up the Chinese market to greater competition from US companies. Expect protracted negotiations but Beijing’s recent removal of foreign ownership restrictions—30% limit for single foreign investors in securities ventures—signals that China may be willing to compromise.