Mnuchin says he might go to Beijing and the world’s two biggest economies continue to wrestle over their trade differences
US Treasury Secretary Steven Mnuchin said on Saturday he might travel to China, a move that could ease tensions between the world’s two biggest economies, as international policymakers acknowledged Beijing needed to change its trade practices.
The United States has threatened to impose tariffs on up to US$150 billion of Chinese imports to try to force changes in Beijing’s industrial policies, which Washington says are aimed at acquiring American intellectual property.
Mnuchin held a string of meetings over the past three days with financial officials from China, Japan and Europe over the punitive tariffs the administration has unveiled in an effort to fulfil US President Donald Trump’s campaign promise to reduce America’s huge trade deficits.
In his discussion with Chinese officials, Mnuchin said the two sides covered the proposals that Chinese President Xi Jinping had made to open the Chinese market. “We are cautiously optimistic,” Mnuchin said.
He said he was continuing to have discussions with his Chinese counterparts to try to resolve the differences over trade, but said he might go to Beijing.
“A trip is under consideration,” Mnuchin said on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington.
“I am not going to make any comment on timing, nor do I have anything confirmed, but a trip is under consideration.”
Mnuchin also declined to say what he wanted from a trade deal with China, adding, “If we have a deal, you’ll know what it looks like when we have it.”
China has threatened retaliation against US exports if Washington pushes ahead with the tariffs. The row, which comes as the world economy records its strongest growth in years, cast a pall over the semi-annual gathering of the world’s finance officials.
IMF managing director Christine Lagarde warned last week that a US-China trade war threatened to damage confidence, investment and growth. On Saturday, she said there would be no winners from such a conflict.
“It is important that as a global community we keep trade open, we ensure that we work within the multilateral system that we have to make sure if there are disputes, these disputes are resolved,” she said.
