ZCZC
BCN-04
US-CHINA-TRADE
White House denies reports of canceled trade meeting
WASHINGTON, Jan 23, 2019 (BSS/AFP) – The White House on Tuesday said high-
level trade talks with Beijing were proceeding uninterrupted, quickly
rebutting media reports that progress toward resolving their trade war had
faltered.
Chinese Vice Premier Liu He is to meet his US counterparts in Washington
next week as the two sides work to resolve their trade disagreements by March
1, when a 90-day truce is due to expire, allowing US import duties on Chinese
goods to increase sharply.
Washington and Beijing imposed tit-for-tat tariffs on more than $360
billion worth of goods in two-way trade last year.
Trump initiated the trade war because of complaints over unfair Chinese
trade practices — concerns shared by the European Union, Japan and others.
The Financial Times and CNBC both reported Tuesday afternoon that
Washington had canceled a preliminary meeting set for this week ahead of
Liu’s visit.
American officials had reportedly cited a lack of progress on the most
difficult issues in the trade dispute — including allegedly forced
technology transfers and far-reaching structural reforms to China’s economy.
The reports sent Wall Street even further into the red. US stocks had
already opened lower on downgraded forecasts for global economic growth.
But, shortly before the close of trading in New York, top White House
economic aide Larry Kudlow flatly denied the reports during an appearance on
CNBC.
“With respect, the story is not true,” Kudlow said.
“There was never a planned meeting that was canceled.”
Stock prices recovered some of their losses following his remarks but
still finished substantially lower for the day.
MORE/HR/0932
ZCZC
BCN-05
US-CHINA-TRADE 2 LAST WASHINGTON
Kudlow said the United States continued to press the Chinese on the
subject of intellectual property and state intervention in markets, among
other matters.
He also said American officials were insisting that any agreement have
teeth to ensure Beijing’s compliance.
“Enforcement is absolutely crucial to the success of these talks,” Kudlow
said.
“Will it be solved at the end of the month? I don’t know. I wouldn’t dare
predict and want to make sure people understand how important that is to put
it on the table.”
If both sides fail to reach a resolution to the trade war, US duty rates
on $200 billion in Chinese goods are due to rise to 25 percent from their
current 10 percent, a prospect that has shaken markets in recent months.
Last year, the Chinese economy posted its slowest annual growth in nearly
three decades, according to official figures published Monday in Beijing,
underscoring concerns the trade conflict with the United States could sap the
strength of the world’s second-largest economy and harm global growth in the
process.
BSS/AFP/HR/0935