China welcomes U.S. invitation for new round of trade talks

Marco Green
September 13, 2018

His first round of tariffs this summer hit US$50 billion in Chinese products like high-end technology parts and manufactured goods, while Beijing fired back dollar-for-dollar at United States soybeans, autos and other farm goods.

President Donald Trump's push to impose tariffs on China and other countries is aimed at deterring what he views as unfair trade practices and, equally important, to encourage American consumers and businesses to buy and sell more goods made at home.

Such a meeting could take place in Washington or Beijing, though the timing is unclear, according to informed sources.

Some businesses are concerned about rising costs of imported materials; others, particularly farmers, about retaliatory tariffs imposed by China and Europe on US exports.

According to many recent reports, Taiwanese companies are already beginning to shy away from the Chinese market because of the likelihood that their products manufactured in China will be targeted by the Trump administration.

It also showed looming tariffs on US$200-billion of Chinese goods is expected to expand the pain to three-quarters of firms.

Talk might be cheap, but it is certainly better than another round of multi-billion-dollar tit-for-tat tariffs between the United States and China.

China has threatened retaliation, which could include action against US companies operating there.

"We support President Trump's efforts to reset U.S".

The longer the trade war continues the less attractive China will become as a manufacturing base for worldwide companies, making other emerging markets like Indonesia and India preferable locations for manufacturing.

"While we agree that there are issues that need to be addressed with key trading partners, tariffs are the wrong approach to bring about meaningful change", the groups wrote in a letter to Congress.

More than 430 companies responded to the survey between August 29 and September 5, which Ken Jarrett, president of AmCham Shanghai, said had been conducted in part to provide AmCham with data for meetings with members of congress later this month.

China's Commerce Minister confirmed it received the invitation but after this tweet from Trump, you have to wonder how much there is to negotiate.

Almost two-thirds of the companies that responded have not relocated nor were they considering moving manufacturing facilities away from China.

Many local companies are considering establishing manufacturing facilities across Southeast Asia, and there are more than a few global companies based all over the world that are probably looking to do the same. A similar amount said they were delaying investment decisions because of the trade tensions.

USA business groups are escalating their fight against Trump's tariffs, with over 60 industry groups launching a coalition to put political pressure on the Trump administration to seek alternatives to tariffs.

Other reports by Click Lancashire

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