U.S. Hurting Its Own Credibility with U-Turn on Trade: China

U.S. Hurting Its Own Credibility with U-Turn on Trade: China

An American business group has appealed to China to allow more access to its state-dominated economy ahead of a visit by U.S. Commerce Secretary Wilbur Ross for trade talks.

Citing a USA official, the Associated Press reports that Chinese graduate students majoring in robotics, high-tech manufacturing or aviation may now only get one-year visas.

The U.S. also wants its representatives to make site visits to check ZTE's claims about components without coordinating with Chinese government officials, as required by a non-public agreement between the countries, sources said. Under the deal, ZTE will oust its management team, hire American compliance offers and pay a fine - on top of the $1 billion it's already paid for selling equipment to North Korea and Iran in violation of US sanctions.

For example, the initial release of the more than 1,300 goods from the United States prompted China to announce its own suite of 106 US products that would be subject to a 25 percent tariff.

Trump, while demanding China to reduce the $375 billion by $100 billion retaliated with $50 billion tariffs on Chinese products. "Indeed, while China has shown itself willing to compromise in the area of trade deficit reduction, it will not take any actions which threaten its strategically important "Made in China 2025" program".

Starting next month, the average tariff rate on 1,449 products imported from most favoured nations will be reduced to 6.9 percent from 15.7 percent, which is equivalent to a cut of about 60 percent, the finance ministry said in a statement on its website.

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The purchases are partly aimed at shrinking the $375 billion US goods trade deficit with China. But on Tuesday, the White House announced that it would impose 25 percent tariffs on $50 billion worth of imported goods from China, with a final list of what imports will be covered to be published next month.

Fabry said the Europeans were now pushing a "new narrative" in which, as the world's biggest market of 500mn people, they will lead a push to preserve the "regulated globalisation" that Trump is trying to overturn, Fabry said.

Beijing is in the midst of talks with Washington on possible measures to narrow its trade surplus by increasing imports. His hardline trade adviser, Peter Navarro, charged Wednesday that Mnuchin's conciliatory comments about China were "an unfortunate sound bite".

With about $20 billion in agricultural exports to China previous year, USA farmers and ranchers are closely following the bout.

"This is dumb", said Republican Sen. "Europe, Canada and Mexico are not China, and you don't treat allies the same way you treat opponents". "So still, no trade", he said.

In return, the Commerce Department lifted a seven-year ban on ZTE's purchase of US components that it imposed earlier in May.

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