China insists that the US has to give up on some tariffs before reaching the “phase one” trade deal. On Thursday, Gao Feng, the spokesman of China’s commerce ministry, told reports:
“The Chinese side
believes that if the two sides reach a phase one deal, tariffs should be lowered
accordingly.”
US President Donald Trump has been hesitant to rollback tariffs imposed on goods imported from China. Still, Feng confirmed that Washington and Beijing were maintaining close communication.
Last week, China’s lead trade negotiator Vice Premier Liu He had a phone conversation with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. The media found out that the parties touched upon “core issues of concern.”
Previously, markets hoped that the US and China would ink a phase one deal before the end of November, ahead of a new series of US tariffs set to become effective on December 15. However, the world’s two largest economies still disagree on many issues. The interim deal is likely to be signed at the beginning of next year.
The situation got worse earlier this month after the US Congress passed two bills that seek support for pro-democracy protesters in Hong Kong. Trump was forced to sign the bills, which enraged China. Beijing accuses the US of interfering with internal affairs.