A new summit between the heads of state for the US and China may be necessary to settle an ongoing trade dispute between the two countries, US President Donald J. Trump said on February 1.
Following two days of negotiations in Washington, US Trade Representative Robert Lighthizer said his talks with China’s Vice-Premier, Liu He, focused on demands for structural reforms by Beijing that include forced technology transfers and Chinese industrial subsidies.
If no resolution is reached by March 1, tariffs on $200 billion of Chinese goods are set to increase from 10% to 25%, a prospect that has spooked the world financial markets because of the inevitable economic damage.
China appears ready to offer an increase in US imports to reduce the bilateral trade deficit, including soybeans, as well as to provide better access to the domestic Chinese market for international investors. Beijing has, however, been reluctant to undermine state support for the economy in a way that would reduce its chances of competing with the US on innovation and advanced technologies.