US and Chinese trade negotiators haggled on Th ursday over the details of a set of agreements aimed at ending their trade war, just one week before a Washington-imposed deadline for a deal expires and triggers higher US tariffs.
Reuters reported exclusively on Wednesday that the two sides are starting to sketch out an agreement on structural iss
ues, drafting language for six memorand ums of understanding on proposed Chinese reforms.
If the two sides fail to reach an agreement by March 1,
US tariffs on $200 billion worth of Chinese imports are set to rise to 25 percent from 10 percent. Tit-for-tat tariffs between the world's two largest economic powers have disrupted international trade and slowed the global economy since the trade war started seven months ago.
Negotiators have struggled this week to
overcome differences on specific language to address tough US demands for structural changes in China's economy, two sources familiar with the talks said. The iss ues include an enforcement mechanism to ensure that China complies with any agreements.
"It's not surprising that this week has been more challenging," said an industry source familiar with the
talks. "Once you move from putting together outlines to filling out the details, that is where things would naturally become more challenging."
Chinese officials did not answer q
uestions as they left the US Trade Representative's office on Th ursday evening after more than nine ho urs of talks on Th ursday.
ussions began with a photo opportunity where US Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He faced each other silently across a table in the Eisenhower Executive Office Building next door to the White House.
It was unclear whether Liu would meet with
US President Donald Trump after the scheduled end of talks on Friday, as they did during Li u's last visit to Washington for talks in late January.
Trump, who has embraced an "America First" policy as part of an effort to rebalance global
trade, has said the March 1 deadline could be extended if enough progress is made.
Sources familiar with the negotiations told Reuters the memorand
ums would c over forced technology transfer and cyber theft, intellectual property rights, services, currency, agriculture and non-tariff barriers to trade.
The two sides remain far apart on demands by Trump's administration for
China to end practices on those iss ues that led Trump to start levying duties on Chinese imports in the first place.
Chinese President Xi Jinping would need to undertake difficult structural economic reforms to meet
US demands. The United States is offering no real concessions in return, other than to remove the tariff barriers Trump has imposed to force change from China. Pen To Paper
One of Trump's demands that is easier to fix for Beijing is to reduce the
trade imbalance between the two nations. The US trade deficit with China reached a record $382 billion through the first 11 months of 2018.
The two sides have reached consensus on how to alleviate the
trade imbalances, several Chinese g overnment sources said. Washington and Beijing are looking at a 10-item list for that, including additional Chinese purchases of agricultural produce, energy and goods such as semiconductors. US Agriculture Secretary Sonny Perdue called China's pledges to purchase U.S. agricultural produce premature.
"Those proposals are all contingent upon a grand deal," he said on the sidelines of the
US Department of Agriculture's annual forum in Washington.
"The real issue is structural reforms regarding intellectual property, enforceability of those types of provisions."
The United States could quickly recPerdue has
over its lost agricultural markets in China if a deal is struck, he said. overseen $12 billion in federal aid to US farmers for losses they have sustained because of the trade war. China had all but halted purchases of US soybeans, which were the single biggest US agricultural export, worth around $12 billion in 2017.