US demand that China commits to reforms in writing threatens to scupper trade talks
- Washington refuses to accept verbal assurances but China is reluctant to make further structural reforms
- Some government advisers in Beijing believe it would be better to accept higher tariffs than make ‘suicidal’ changes to country’s economic model
The trade talks between China and the United States face the risk of collapse over one key issue: Washington’s demand that every commitment Beijing agrees to in principle must be written in the text of a final trade deal, according to a Chinese government policy adviser.
Shi Yinhong, an adviser to China’s State Council and a US affairs professor at Renmin University, said the US had pressed China to make changes on structural issues, such as subsidies for state-owned enterprises, changes that Beijing found difficult to accept but would not reject outright.
“China wanted to offer some smaller concessions, hoping the US would accept,” Shi said. “But Trump will not allow it.
“The US demands that every single item China has agreed to in principle should be included in the trade deal, and China does not agree with that.”
After US President Donald Trump threatened to raise tariffs on US$200 billion of Chinese goods from 10 per cent to 25 per cent, Beijing insisted it would not make extra concessions to Washington with state media saying China has to stick to its “bottom line” ahead of the next round of talks on Thursday.