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US-China relations
ChinaDiplomacy

Trade top of agenda as Chinese economic adviser Liu He ‘seeks coordination’ with US officials

Trip comes amid reports White House adviser Peter Navarro, known for being tough on China, could be given more direct influence on US trade policy

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Liu He told the World Economic Forum in Davos in January that China’s economic transformation could create huge potential for foreign firms. Photo: EPA-EFE
Teddy Ngin Hong KongandWendy Wuin Beijing

Xi Jinping’s most trusted economic adviser left for the United States on Tuesday seeking more engagement with Washington on trade and macroeconomic policy at a rocky time for relations.

Liu He, director of the Office of the Central Leading Group for Financial and Economic Affairs, will meet US officials in Washington during the visit that finishes on Saturday.

The trip signals that Liu will be a key official handling economic relations between China and the US following a reshuffle during Beijing’s annual legislative session starting next week. Liu is also widely seen as the most likely candidate to take over as central bank governor when incumbent Zhou Xiaochuan retires.
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It comes after the ruling Communist Party on Sunday announced controversial proposed changes to the constitution removing term limits on the president and vice-president.

But diplomatic observers said trade and economic issues would be at the top of Liu’s agenda, especially with the prospect of Peter Navarro being given more direct influence over US trade policy.

The White House trade adviser, who is known for being tough on China, was sidelined last year after he reportedly clashed with US President Donald Trump’s more moderate advisers. But US media have reported this week that Trump aides are now considering promoting Navarro to assistant to the US president on trade policy – a sign that Washington could be about to put its rhetoric against China into action.

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