China, US close to agreeing interim trade war deal, Beijing expert predicts

Chen Wenling, the chief economist for the China Centre for International Economic Exchanges, spoke as a Chinese delegation flew to Washington for preliminary talks

China’s interest in buying US agricultural products will be supported by a personal visit by a member of China’s negotiating team to Midwestern farm states next week

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China’s interest in buying US agricultural products will be supported by a personal visit by a member of China’s negotiating team to Midwestern farm states next week. Photo: Reuters

Published: 1:14pm, 19 Sep 2019Updated: 11:33pm, 19 Sep 2019

China and the United States are expected to reach an interim trade deal in Washington next month, with Beijing agreeing to buy more American farm products and the Trump administration postponing further tariff increases and easing restrictions on Chinese telecommunications company Huawei, a researcher affiliated with the Chinese government said.

A Chinese delegation led by vice finance minister Liao Min left Beijing for Washington on Tuesday to set out China’s agenda for the high-level talks that are set to take place in October that will involve key trade negotiators Vice-Premier Liu He, US trade representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin.

China’s interest in buying US agricultural products will be supported by a personal visit by a member of China’s negotiating team to Midwestern farm states next week.

The senior official from China’s Ministry of Agriculture will visit US farmers in Nebraska and Montana, a source with knowledge of the trip told the South China Morning Post, without going as far as naming the official.

However, it is unknown whether the trip is intended to finalise the details of Chinese purchases of US farm products, the source added.

But for a deal to be agreed next month, the US might have to postpone proposed tariff increases beyond October 15, according to Chen Wenling, the chief economist for the China Centre for International Economic Exchanges.

“The US should rescind its tariffs, and in particular, it shouldn’t impose any new tariffs, that’s definitely the bottom line of Beijing,” Chen said.