China still ‘preparing’ delegation for US trip despite Donald Trump’s threat to increase tariffs
- US President said he will increase punitive tariffs on US$200 billion of imports from 10 per cent to 25 per cent on Friday in a tweet posted on Sunday
- Liu He could depart Beijing on Thursday, three days later than previously scheduled, and leave Washington a day later, says a source
China is still preparing to send a delegation to Washington for the trade talks despite the latest threats by US President Donald Trump to increase tariffs, Foreign Ministry spokesman Geng Shuang said on Monday.
“There have been many times that the US side has threatened to increase tariffs,” Geng said when asked about Trump’s tweets on Sunday which threatened to impose punitive tariffs on US$200 billion of imports from China tariffs beginning on Friday. “China’s positions are clear and the US side is well aware of them.
“[We had hoped] to make progress in our trade talks and [we] hope the US side can work together with us and move in the same direction so we can achieve a deal that can benefit both sides. Everyone in China and abroad is very concerned about the next round of talks, and we are also learning about the relevant changes. The Chinese delegation is preparing to go to the US for the negotiations.”
The People’s Bank of China (PBOC) announced Monday morning that it had cut the required reserve ratio – the amount of money banks must hold in reserve at the central bank – for smaller banks to help spur lending to small businesses, who would be hit hardest by higher trade tariffs. The PBOC said the move was part of its on-going adjustments to help small businesses, making no mention of Trump’s tariff threat.
There were high hopes that Liu He’s trip to Washington this week for the 11th round of talks would produce a deal to end the trade war which has ravaged the global economy for almost a year.