Countdown to US-China trade talks, but little hope of bigger breakthrough

Representatives from both countries to discuss phase one deal at the weekend as tensions flare on range of fronts

Trade is one of the few areas of engagement but no longer the anchor of stability, observers say

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Chinese purchases of US goods got off to a slow start this year but have picked up in recent months. Photo: Bloomberg

Published: 10:00pm, 14 Aug 2020Updated: 1:00am, 15 Aug 2020

Talks this weekend on the China-US phase one trade deal are not expected to stop the free fall in overall ties, with Washington rejecting Beijing’s call for wider discussions during the meeting, according to analysts and a source familiar with the talks.

Chinese Vice-Premier Liu He and US Trade Representative Robert Lighthizer are expected to have a video conference on Saturday to review the implementation of the trade deal the two nations agreed to in January.

A US source familiar with the talks said China saw the meeting as a chance to discuss broader issues, such as a proposal to ease their rising tensions, but Washington turned down the offer because it was not convinced that China was willing to make changes to its economic and political structure.

The overall relationship between the two countries has plummeted and Saturday’s meeting could be one of the few high-level dialogues before the US presidential election in November.

US Trade Representative Robert Lighthizer (left) and Chinese Vice-Premier Liu He will talk trade via a video conference on Saturday. Photo: AFP

Tensions have flared on various fronts, including handling of the coronavirus pandemic, the South China Sea, technology, security and ideology.

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