The upbeat tone following the latest round of talks in Washington has raised hopes of an agreement to cut tariffs
The latest trade talks between the Chinese and Americas have raised expectations that the two sides will try to extend their tariff truce or even start reducing tariffs.
But diplomatic observers are less certain that Beijing will agree to set up a framework that will allow Washington to check that the Chinese side is living up to its commitment to structural industrial reforms – a major stumbling block in their ongoing negotiations.
On Thursday Donald Trump suggested he may meet his Chinese counterpart Xi Jinping for talks to finalise a deal.
“The two sides may seek to suspend the punitive tariffs and make promises on other issues before March 1 so that the two sides can start to move to further negotiations on more technical issues,” Lu Xiang, a Sino-US relations specialist with Chinese Academy of Social Sciences, said. “When the atmosphere improves, many things can be done.”
In early December Trump and Xi agreed to suspend further tariff increases before March 1, but if they cannot reach a deal by that date the US has threatened to raise tariffs on US$200 billion of Chinese goods from 10 per cent to 25 per cent.
Wei Jianguo, a former vice-minister of commerce and a researcher at the China Centre for International Economic Exchanges, said Trump and Xi might reach a surprisingly positive deal and agree significant tariff cuts.
“The deal could be seen as a way out after more than a year of misunderstanding,” Wei said.
