Treasury Secretary Steve Mnuchin along with trade representative Robert Lighthizer on one side, and Vice Premier Liu He, effectively China's economy czar and President Xi Jinping' "Real second-in-command" on the other, have been negotiating behind the scenes, according to the FT. And although nothing has been finalized, Liu has assured Mnuchin that China would cave on several US demands, including allowing foreign investment in Chinese securities firms and offering to buy more semiconductors from US semiconductor firms, the FT reported.
Mnuchin, who is reportedly considering whether he should plan a trip to Beijing to expedite the negotiations, said Sunday after the US and South Korea reached a trade deal to exempt the South from US aluminum and steel tariffs that he was optimistic the US might reach a similar agreement with China.
Late last week, President Trump announced that he planned to impose $60 billion in tariffs on Chinese industrial exports to reduce China's nearly $400 million merchandise trade surplus with the US. Beijing subsequently announced it would retaliate with sanctions on a just $3 billion of US imports, with threats of more sanctions to come.
In an interview with Chinese media published Monday, Li Keqiang emphasized that there was no point in a trade war between the US and China, and that the two sides would come to a reasonable solution.
Li added that China would cease its practice of forcing foreign firms to turn over valuable intellectual property by partnering with China firms in "Joint ventures."
As WSJ points out, farm-belt Trump voters, whose exports face possible retaliatory tariffs by China, decried the tariff plans, and in foreign capitals from Canberra to Brussels, US allies nervously weighed diplomatic options as tensions mounted between Washington and Beijing.
China is hoping it's launch of the petroyuan contracts will help speed up the internationalization process - and the ascendance of the yuan as a reserve currency.
https://www.zerohedge.com/news/2018-03-26/global-stocks-rally-reports-us-china-nearing-deal-avert-tit-tat-trade-war
Mnuchin, who is reportedly considering whether he should plan a trip to Beijing to expedite the negotiations, said Sunday after the US and South Korea reached a trade deal to exempt the South from US aluminum and steel tariffs that he was optimistic the US might reach a similar agreement with China.
Late last week, President Trump announced that he planned to impose $60 billion in tariffs on Chinese industrial exports to reduce China's nearly $400 million merchandise trade surplus with the US. Beijing subsequently announced it would retaliate with sanctions on a just $3 billion of US imports, with threats of more sanctions to come.
In an interview with Chinese media published Monday, Li Keqiang emphasized that there was no point in a trade war between the US and China, and that the two sides would come to a reasonable solution.
Li added that China would cease its practice of forcing foreign firms to turn over valuable intellectual property by partnering with China firms in "Joint ventures."
As WSJ points out, farm-belt Trump voters, whose exports face possible retaliatory tariffs by China, decried the tariff plans, and in foreign capitals from Canberra to Brussels, US allies nervously weighed diplomatic options as tensions mounted between Washington and Beijing.
China is hoping it's launch of the petroyuan contracts will help speed up the internationalization process - and the ascendance of the yuan as a reserve currency.
https://www.zerohedge.com/news/2018-03-26/global-stocks-rally-reports-us-china-nearing-deal-avert-tit-tat-trade-war
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