US-China trade negotiation will resume on Wednesday with Chinese Vice-Premier Liu He arriving in Washington. Liu will meet both US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
It’s reported that an agreement is within reach, covering most of the core issues including intellectual property theft and forced technology transfer. But there is so far no news regarding subsidies for state owned enterprises, which create unfair playing fields.
In addition, the real crucial topic of enforcement is unresolved. The US is believed to be demanding to keep current punitive tariffs until China implements what are agreed. But this is at the same time firmly objected by China.
Nevertheless, US Chamber of Commerce head of International Affairs Myron Brilliant sounded optimistic. He said yesterday that “we’re getting to the point where it’s clear that both governments want a deal. The presidents want a deal, and they need to get through the end-game issues. This is a critical week.”
Brilliant added, “ninety per cent of the deal is done, but the last 10 per cent is the hardest part, it’s the trickiest part and it will require trade-offs on both sides.”