A U.S. delegation to China negotiating the yawning trade gap between the world’s two largest economies is just beginning a long and protracted process with any concrete outcomes unlikely from this first round, experts said on Friday.
“This 48-hours negotiation is unlikely to result in any concrete outcomes, and certainly not resolve anything,” said Deborah Elms, executive director at the Singapore-based Asian Trade Centre.
The talks, led by Treasury Secretary Steve Mnuchin and Chinese Vice Premier Liu He, began on Thursday. The U.S. team contains key members of President Donald Trump’s administration including the National Economic Council’s Larry Kudlow and U.S. Trade Representative Robert Lighthizer.
Trump’s team was set to depart Friday.
So far, few details from the meeting have emerged, but Mnuchin told reporters on Friday morning that the delegation has been “having very good conversations,” Reuters reported.
The current “getting-to-know-you phase” will give Chinese officials the opportunity to assess the delegation, Elms said. It also comes with risks from looming tariffs between the two giants, she added.
“We’re in the process of negotiations, which suggests that things are moving along quite well. But, because it’s all taking place with the possibility of tariffs that could be triggered at any moment, that’s a lot of pressure and things could go quickly awry without a lot of additional pressure,” said Elms.
One major issue under scrutiny is if the U.S. will be able to talk China into rolling back Xi Jinping’s Made in China 2025 drive — a core government program to upgrade the country’s manufacturing base by way of more advanced products.
Source : CNBC
