Can US-China talks calm global trade war fears?

As fears of a global trade war escalate, all eyes will be on Beijing this weekend.US Commerce Secretary Wilbur...

Posted: Jun 2, 2018 6:09 PM
Updated: Jun 2, 2018 6:09 PM

As fears of a global trade war escalate, all eyes will be on Beijing this weekend.

US Commerce Secretary Wilbur Ross arrived in the Chinese capital on Saturday for talks with trade negotiators from the world's second-biggest economy.

Ross is due to hold meetings on Sunday, before departing Beijing on Monday, a US Commerce Department official told CNN. The official would not provide any more information about the meetings

The negotiations come after a rocky week during which the United States tore up a tentative trade truce with China and hit Canada, Mexico and the European Union with big tariffs on metal imports. All three will retaliate.

What are the talks about?

Washington and Beijing have been exchanging threats for months, announcing plans for tariffs on tens of billions of dollars of each others' exports.

President Donald Trump wants China to engineer huge cuts in its $375 billion trade surplus in goods with its biggest trading partner.

Related: Trump's on-again, off-again strategy on China may backfire

At the last round of talks in Washington, China pledged to significantly boost its purchases of American goods and services.

Senior US officials have said that during the Beijing visit, Ross will be seeking commitments on how that will happen in areas such as energy and agriculture.

But experts are skeptical that the United States will be able to get China to do enough to significantly close the huge trade gap.

Related: US-China trade battle: How we got here

Other big US demands may also be on the table.

Speaking on Thursday, Ross said the objectives of the Trump administration hadn't changed.

"Our basic objectives with China are to sell them more product, get less in the way of tariff and non-tariff trade barriers, and then ultimately, and most importantly ... deal with the problems of intellectual property, technology transfers, the whole litany of high-tech things," he told CNBC.

The United States is pressing Beijing to move away from industrial policies that critics say subsidize Chinese companies on the global stage and pressure foreign firms to hand over key technologies.

US officials are particularly concerned about "Made in China 2025," which seeks to pump hundreds of billions of dollars into high-tech industries like robotics, electric cars and computing with the aim of becoming a global leader in those fields.

Analysts say China is unlikely to budge on those plans, which it sees as crucial for developing its huge economy.

What could go wrong?

The Trump administration upped the stakes ahead of Ross' expected visit by saying Tuesday it planned to forge ahead with tariffs on about $50 billion worth of Chinese goods, as well as measures to restrict Chinese investment in the United States.

The move was unexpected, as trade tensions appeared to have eased in recent weeks after both sides said they had agreed to put plans for tariffs on hold while they tried to make progress in negotiations.

Related: 3 tough questions after US-China trade truce

Analysts at Oxford Economics suggested that the announcement was "aimed at renewing pressure on China ahead of the bilateral talks and the possible North Korea summit," according to a research note this week.

The Chinese government said the move went against the recent consensus between the two countries. It reiterated its stance that it doesn't want a trade war but isn't afraid of fighting one.

But it has resisted announcing any retaliation so far. A US delegation arrived in Beijing on Wednesday for preliminary talks to establish the outlines for the weekend negotiations.

China previously said it could strike back with tariffs on American goods such as soybeans.

-- Jethro Mullen, Alanna Petroff, Steven Jiang and Kevin Bohn contributed to this report.

West Lafayette
Scattered Clouds
31° wxIcon
Hi: 59° Lo: 42°
Feels Like: 31°
Kokomo
Clear
29° wxIcon
Hi: 55° Lo: 41°
Feels Like: 29°
Rensselaer
Clear
27° wxIcon
Hi: 57° Lo: 35°
Feels Like: 27°
Fowler
Clear
27° wxIcon
Hi: 57° Lo: 38°
Feels Like: 27°
Williamsport
Clear
31° wxIcon
Hi: 58° Lo: 41°
Feels Like: 31°
Crawfordsville
Clear
29° wxIcon
Hi: 58° Lo: 43°
Feels Like: 29°
Frankfort
Clear
31° wxIcon
Hi: 57° Lo: 41°
Feels Like: 31°
Delphi
Clear
29° wxIcon
Hi: 58° Lo: 41°
Feels Like: 29°
Monticello
Clear
29° wxIcon
Hi: 57° Lo: 40°
Feels Like: 29°
Logansport
Clear
30° wxIcon
Hi: 57° Lo: 39°
Feels Like: 30°
Dry Weekend with Coldest Weather of the Fall So Far on Sunday Night
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 172730

Reported Deaths: 4260
CountyConfirmedDeaths
Marion26807796
Lake15074371
St. Joseph10092174
Elkhart9783146
Allen9123235
Hamilton6697120
Vanderburgh640572
Tippecanoe424616
Porter372351
Hendricks3532139
Monroe345038
Johnson3438132
Delaware326378
Clark318865
Vigo293042
Madison270398
LaPorte248867
Cass234426
Kosciusko219529
Warrick212166
Floyd193369
Howard176267
Wayne156933
Dubois155727
Marshall154930
Bartholomew153259
Grant141240
Henry140530
Boone134850
Hancock130244
Noble129335
Jackson125420
Dearborn109728
Lawrence104238
Morgan103040
Gibson98212
Clinton97816
Daviess96036
Shelby95737
Knox89210
LaGrange85115
Fayette84922
Harrison83524
DeKalb82413
Posey8058
Putnam80017
Jasper7395
Miami7205
Steuben7059
Montgomery66622
White65816
Adams6337
Greene60838
Scott57916
Decatur56239
Whitley5216
Ripley5178
Wabash5079
Wells50412
Huntington4985
Clay4927
Starke4929
Sullivan48114
Spencer4436
Randolph43911
Orange43625
Perry42114
Jefferson4165
Fulton4159
Washington4143
Jennings40213
Franklin39625
Jay3816
Pike37018
Carroll36413
Fountain3643
Tipton29423
Vermillion2911
Rush2734
Parke2724
Blackford2555
Newton24411
Owen2251
Martin2070
Pulaski1874
Crawford1691
Brown1523
Ohio1457
Union1280
Benton1160
Switzerland1070
Warren1021
Unassigned0236

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events