Despite cautious optimism, economic worries hang over US-China trade talks
- Officials and business leaders are hoping that meetings in Beijing spur a continued thaw in relations between the economic superpowers
- No agreement is expected this week, but the meeting is likely to set the stage for higher level talks
This story is published in a content partnership with POLITICO. It was originally reported by Doug Palmer on politico.com on January 6, 2019.
US President Donald Trump took a big gamble in 2018 that the US economy could withstand a trade war with China. Talks this week in Beijing could determine if that bet will pay off.
A US team led by Deputy Trade Representative Jeffrey Gerrish will hold two days of discussions with Chinese officials to try to resolve concerns that prompted Trump to slap duties on US$250 billion worth of Chinese goods.
“We’ll see what happens,” Trump told reporters on Friday when asked about the negotiations. “But I can tell you, China is not doing well now and it puts us in a very strong position. We are doing well.”
No agreement is expected this week, but the meeting is likely to set the stage for higher level talks next week between delegations led by US Trade Representative Robert Lighthizer and Chinese Vice-Premier Liu He.
Officials from both nations expressed cautious optimism going into the discussions. Larry Kudlow, Trump’s top economic adviser, told Bloomberg TV on Friday that the scheduled talks were a good sign that some kind of deal could be reached.