China Trade Deadline Approaches

China Trade Deadline Approaches

China Trade Deadline Approaches

USA officials have said March 1st is a hard deadline, but President Trump has suggested a possible extension if progress was being made.

Treasury's Mnuchin and United States trade representative, Robert Lighthizer, would be participating in the high level trade talk in Beijing, which would unlikely to bear fruit, since all the China had been doing after the trade truce, was talking about purchasing more U.S. goods, evading the IP rights talks, which USA claimed "not enough" for getting a trade deal done last week.

If a deal is not reached by the beginning of next month then Washington is set to more than double tariffs on 200 billion dollars-worth of Chinese imports. And top White House economist Larry Kudlow said Thursday that while Trump was "optimistic" about prospects for a deal, there remained a "sizable distance" separating the two sides.

President Trump has also said he's unlikely to meet President Xi Jinping before the deadline, dampening hopes of a speedy resolution.

Uncertainty whether the leaders will meet to finalize an agreement has stoked concerns that negotiations are faltering as the March 1 deadline approaches.

Now, if we're close to a deal where we think we can make a real deal and it's going to get done, I could see myself letting that slide for a little while. China would likely respond by raising tariffs on $60 billion worth of U.S goods that it announced a year ago in retaliation.

Talks kicked off in Beijing with discussions among deputy-level officials on Monday before minister-level meetings later in the week. But the two sides are only just starting the work of drafting a common document and are still tussling over how a deal may be enforced, which USA officials have repeatedly called a crucial element.

U.S. Treasury Secretary Steven Mnuchin, a member of the U.S. trade delegation to China, leaves a hotel in Beijing, China February 13, 2019.

Facing an economic slowdown at home, the Chinese government has a strong motivation to address American demands and put an end to the trade war.

These include ending China's alleged violations of intellectual-property rights and forced transfers of American technologies.

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