China seeks to 'strengthen cooperation' at trade talks with US
Washington and Beijing slapped escalating, tit-for-tat levies on each other's exports earlier this year - reaching triple-digit levels - stalling trade between the world's two biggest economies as tensions surged.
US Treasury Secretary Scott Bessent said on Tuesday he would meet his Chinese counterparts in Stockholm next week for tariff talks.
The third round of high-level negotiations would see a likely postponement of a mid-August deadline for levies to snap back to steeper levels, Bessent told Fox Business.
Chinese foreign ministry spokesman Guo Jiakun said Wednesday that Beijing hoped the two sides could work together "on the basis of equality, respect and mutual benefit".
"We will enhance consensus, reduce misunderstandings, strengthen cooperation and promote the stable, healthy and sustainable development of Sino-US relations," he said.
China's vice premier will attend the talks in the Swedish capital.
"He Lifeng will go to Sweden from Jul 27 to 30" for the negotiations, a commerce ministry spokesperson said in a Wednesday statement.
After top officials met in Geneva in May, both sides agreed to temporarily lower their tariff levels in a de-escalation set to expire next month.
Officials from the two countries also met in London in June.
DEADLINE APPROACHES
Bessent noted that Washington also wanted to speak about a wider range of topics, potentially including Chinese purchases of Iranian and Russian oil.
Trade talks between the United States and China had initially stalled after their Geneva meeting, although Bessent said trade is in a good place now with Beijing.
Disagreements bubbled to the fore when US officials earlier accused Beijing of violating their pact and slow-walking export license approvals for rare earths - crucial materials for making electronics and other goods.
Since then, the two countries have agreed on a framework to move forward with their Geneva consensus.
The United States has been seen relaxing certain restrictions on semiconductor sales to China, while Beijing has been reviewing applications for export licenses of controlled items.
Since returning to the White House in January, President Donald Trump has imposed a sweeping 10 per cent tariff on allies and competitors alike, alongside steeper levels on steel, aluminium and autos.
The 10 per cent blanket rate is expected to increase for dozens of economies - although not China - come Aug 1, unless they reach an agreement with Washington to avert this outcome.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
2 hours ago
- CNA
Japan trade deal sparks hope for US investors, frustration for automakers
DETROIT :Shares of General Motors, Ford Motor, and Jeep-maker Stellantis, some of the biggest automakers in the U.S., rallied on Wednesday after news of a trade deal that will reduce tariffs on imported Japanese cars, as investors saw it as a sign of more deals to come. But the companies are not celebrating. Automakers importing vehicles into the U.S. from Japan now face a 15 per cent levy, according to terms of the deal outlined on Tuesday by U.S. President Donald Trump, down from 27.5 per cent. GM shares rallied 9 per cent and Stellantis rose 12 per cent, as market watchers said they anticipated further agreements could reduce other trade barriers that have hurt the companies' profits. Ford shares rose about 2 per cent. The automaker is less exposed to tariffs because it produces more of its U.S.-sold vehicles domestically. On Wednesday, the European Union and United States were nearing a trade deal that would also set a 15 per cent tariff on European imports. GM, Ford and Stellantis have been paying up to 25 per cent on vehicles imported from Mexico or Canada, depending on how much U.S. content is in the vehicles. The companies are concerned they could soon be paying higher tariffs on vehicles assembled in Mexico or Canada than on vehicles with significantly less U.S. content made in Japan or the United Kingdom. Some lobbyists also expressed alarm that if South Korea strikes a similar deal with the U.S., it could become a low-cost market to assemble cars and trucks. "They could be the new Mexico," one lobbyist told Reuters. The American Automotive Policy Council, which represents the Detroit Three, criticized the deal, saying it creates an easier path for Japanese imports than for some cars built in North America. Even before Tuesday's deal, Detroit automotive executives raised concerns that Trump's trade policy could end up giving an edge to foreign automakers who do not invest as heavily in U.S. manufacturing. "This is a bonanza for our import competitors," Ford CEO Jim Farley said in February, when Trump initially proposed levies on Mexico and Canada, but not on major automotive centers such as South Korea. The Japan trade announcement came the same day General Motors said tariff costs knocked $1.1 billion from its bottom line, hurt by a battery of levies including 25 per cent taxes on imports from Canada and Mexico, and 50 per cent on steel and aluminum imports. Industry consultant and former GM executive Warren Browne said the Japan deal "put all vehicles produced in Mexico and Canada by the Detroit Three at a disadvantage' because they face higher levies than Toyota vehicles shipped in from Japan, for example. That could allow the foreign brands to undercut U.S. car companies on price. Toyota, Subaru and Mazda are among the most reliant companies on Japan-produced vehicles for their U.S. sales, and stand to benefit most from the lower tariffs, according to business-analytics firm GlobalData. Toyota imported roughly 500,000 vehicles from Japan last year. Japanese automotive stocks soared after the trade deal announcement. Autos Drive America, which represents those Japanese automakers along with other foreign car companies operating in the United States, on Wednesday praised the trade deal, saying it would lead to further factory investment in the U.S. The deal is good news for Wade Kawasaki, executive chairman of the Wheel Group, a collection of aftermarket wheel, tire and accessory companies based in California. Kawasaki said the group has been trying to break into some aspects of the Japanese market, and the lessening levies will help with that. 'There is a certain group of customers who want American-made products. Those are the ones we were going to get,' he said.
Straits Times
5 hours ago
- Straits Times
EU, China plan joint statement on climate change, sources say
Flags of European Union and China are pictured during the China-EU summit at the Great Hall of the People in Beijing, China, July 12, 2016. REUTERS/Jason Lee/File Photo BRUSSELS - The European Union and China are preparing to agree a joint declaration on tackling climate change at a summit in Beijing on Thursday, EU diplomats told Reuters. European Commission President Ursula von der Leyen and European Council President Antonio Costa will visit Beijing on Thursday and meet Chinese President Xi Jinping, among other senior officials. The climate declaration is not expected to include new pledges, but instead reaffirm the two sides' commitment to address climate change, despite the EU and China being at odds over other issues including trade disputes and Russia's war in Ukraine. The summit is not expected to yield major agreements or declarations on other issues, said the diplomats, who were granted anonymity to discuss the confidential EU-China summit preparations. Both China and the EU have pledged to deliver new commitments to reduce greenhouse gas emissions, ahead of this year's U.N. COP30 climate summit in November in Brazil. Both missed a February U.N. deadline to submit their new pledges. A joint commitment on global warming by the two major economies would also stand in contrast to the stance of U.S. President Donald Trump's administration, which has pulled the world's biggest economy out of global negotiations on climate change and rolled back U.S. CO2-cutting policies. REUTERS
Straits Times
8 hours ago
- Straits Times
China tariff deadline can be rolled forward 90 days: US Treasury chief
Find out what's new on ST website and app. WASHINGTON - A deadline for tariffs between the United States and China to snap back to higher levels could be extended in a '90-day increment', US Treasury Secretary Scott Bessent said on July 23, ahead of trade talks next week. Top officials from the world's two biggest economies are set to meet in Sweden on July 28 and July 29 , with Mr Bessent in the US delegation and Chinese Vice-Premier He Lifeng attending the talks. 'We're in a very good place with China now,' Mr Bessent told Bloomberg Television on July 23. He added that the upcoming talks would likely move beyond rare earths and export controls, and 'on to bigger discussions'. Asked about the Aug 12 deadline, when reduced tit-for-tat tariffs are due to bounce back to steeper levels, Mr Bessent signalled openness to a significant extension. 'I think that we could roll it forward, maybe in a 90-day increment,' he said in the interview. 'Both sides have de-escalated, and I think we can get into a very good cadence of regular meetings with them,' he said. Washington and Beijing had slapped escalating tariffs on each other's exports in April, reaching prohibitive triple-digit levels, but both sides reached an agreement to temporarily lower them after negotiations in Geneva. Top stories Swipe. Select. Stay informed. Singapore Judge asks prosecution for more information on Kpods in first case involving etomidate-laced vapes Singapore Male victim of fatal Toa Payoh fire was known to keep many things, say residents Singapore 5 teens arrested for threatening boy with knife, 2 charged with causing hurt Singapore HDB launches 10,209 BTO and balance flats, as priority scheme for singles kicks in Sport Bukayo Saka the difference as Arsenal beat AC Milan at National Stadium Singapore Cyclist charged after allegedly hitting elderly pedestrian, killing him Singapore Over 1.15 million Singaporeans aged 21 to 59 have claimed SG60 vouchers Singapore Singapore Oceanarium will enhance tourism while supporting sustainability: Grace Fu The truce, however, is set to expire in August. Officials from the two countries also met in London in June. On July 23, Mr Bessent said he expected the upcoming discussions could include talks on Chinese purchases of Russian and Iranian oil, alongside security issues. He said both countries would also discuss 'purchasing agreements', especially on agriculture. Trade talks between the United States and China had initially stalled after their Geneva meeting, with Washington accusing Beijing of violating their pact and slow-walking export licence approvals for rare earths. But the countries have since agreed to move forward on a framework to implement their consensus. Asked about a potential meeting between President Donald Trump and his Chinese counterpart Xi Jinping, Mr Bessent said he did not expect anything before September and had no further information on this front. Regarding China's placing of an exit ban on a US government employee, Mr Bessent said that issue could be on the agenda, but that he did not see the move as an attempt to gain leverage with Washington. AFP
