U.S. reached out to China for new trade talks, sources say

China TradeMore

China TradeMore

So far, the United States and China have hit $50 billion worth of each others' goods with tariffs in a dispute over USA demands that China make sweeping economic policy changes, including ending joint venture and technology transfer policies, rolling back industrial subsidy programs and better protecting American intellectual property.

About 30 per cent said they were adjusting supply chains by seeking to source components and/or assembly outside the USA, and about the same number were seeking to source components and/or assembly outside China.

After imposing tariffs on $50 billion worth of Chinese imports, Trump has threatened to do the same on $200 billion of additional imports.

"I think most of us think it's better to talk than not to talk, and I think the Chinese government is willing to talk", Kudlow said, declining to provide any further details.

The last talks, between mid-level USA and Chinese officials on August 22 and 23, failed to reach any agreement.

The unpredictability around the trade fight is hampering investment decisions as investors need stability to make sound decisions, Beebe said.

China's Commerce Minister confirmed it received the invitation but after this tweet from Trump, you have to wonder how much there is to negotiate.

The European Union Chamber of Commerce in China released its own survey on Thursday saying the tariffs were causing "significant disruptions" to global supply chains and "seriously impacting" non-Chinese and non-American companies.

"This survey affirms our concerns: tariffs are already negatively impacting US companies and the imposition of a proposed $200-billion tranche will bring a lot more pain", said Eric Zheng, chairman of AmCham Shanghai.

"Chinese customers just see too much uncertainty around buying American and as a result they shift to alternatives", Beebe told AFP.

According to many recent reports, Taiwanese companies are already beginning to shy away from the Chinese market because of the likelihood that their products manufactured in China will be targeted by the Trump administration.

Beebe said that may be because survey respondents were mostly smaller firms, adding larger companies "have the ability to withstand the impact of the tariffs but it's going to be the smaller ones that are going to feel the pinch sooner".

United States companies are particularly anxious about the "qualitative measures" Beijing has threatened to take as it becomes unable to respond to tariffs dollar-for-dollar - United States goods imports a year ago totalled only US$130 billion. "The US administration will be hurting the companies it should be helping".

"Secretary Mnuchin who is the team leader with China has apparently issued an invitation", Kudlow told Fox Business Network.

More than half of firms say they are already feeling Beijing's wrath, with 27% reporting increased inspections, 19% feeling heightened regulatory scrutiny and 23% witnessing slower customs clearance. "But that scenario risks underestimating China's capability to continue meeting fire with fire".

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