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Dragon Bowing To Eagle? China Suggests A Compromise To Revive Trade With The US
Chinese President Xi Jinping (Feng Li/Getty Images)
In what could make it easier for China and United States to seal a trade deal, a senior Chinese trade official on Saturday (9 March) called on for a compromise between both the countries, reports Indian Express.
However, the compromise could also result in a fragile agreement, that could fall apart quickly if trade frictions between US and China rise again.
According to the report, the most contentious issue between both the countries over the past year has been Trump administration’s demand for an enforcement provision. It would allow the US to monitor China’s behaviour and put penalties in place should the Chinese violated the deal.
China is being pressed by the Trump administration to accept an agreement that allows unilateral re-imposition of tariffs by US if it concludes that structural changes to its economy has not been done by the Chinese.
The US, in exchange, would roll back some of the tariffs it imposed last year on $250 billion of imports from China.
The idea of enforcement provision has been strongly resisted by the Chinese officials. However, Wang Shouwen, Chinese vice minister of commerce for international trade negotiations, reportedly raised a possible compromise at a news conference in Beijing.
As per the report, Shouwen, who was speaking at the annual news conference given by the Chinese Commerce Ministry’s top officials, said China would be amenable to an agreement giving each side an equal right to take trade actions against the other side after an agreement was struck.
“Any implementation mechanism must go in both directions, fair and equal,” Wang was quoted in the report as saying, using China’s preferred term for an enforcement mechanism.
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