After the exchange of intimidations from both sides, Wilbur Ross, U.S. Commerce Secretary has arrived Beijing on Saturday to talk with China for the promise China made to buy more American products after tensions revived by Washington.
China had made a promise on May 19 that the country will volatile surplus in trade in good with the United States, which reached a record $375.2 billion last year.
Last week, President Donald Trump put the talks in jeopardy by renewing the threat to raise tariffs on $50 billion Chinese exports over the complaints that China steals and pressurizes foreign companies to hand over technology.
Analysts say Beijing might be able to compromise its trade surplus, but it will always resist the developments that might hinder to transform China into a global technology competitor.
China is willing to phenomenally increase purchases of farm goods, energy and other products and services, but China resisted pressure to agree to a specific target of narrowing down its annual surplus with the United States by $200 billion.
After the Beijing announcement, Steven Mnuchin, U.S. Treasury Secretary said that the dispute was placed “on hold” but the ceasefire seems to end by the week’s statement by Washington to increase tariffs on Chinese exports as well as limit Chinese investment and purchase of U.S. high tech exports.
The American move reflects concerns about China’s status as a serious tech competitor also the complaints that Beijing unfairly subsidize its fledgling industries and hide them from the competition.
Foreign businesses and governments are citing strategic plans “Made in China 2025” the growing concerns about China leading the robotics, computer chips, and electric cars technology.
Trump has also threatened additional tariffs on $100 billion Chinese goods with no indication when it can go ahead. China has also retaliated and threatened tariffs on $50 billion U.S. goods criticizing trumps move and its repercussions.
International trade experts and analysts also warned Ross’s attempt might be weakened amid Trump’s decision Thursday to go ahead with tariffs on steel and aluminum imports for Europe, Mexico and Canada, U.S. allies complaining about Chinese technology policy and a flood of low-priced aluminum and steel might alienate them.