US-China trade dialogue ‘shows continuity’ in Beijing’s approach to relations

Vice-Premier Liu He’s lead role in phone call with US Trade Representative Katherine Tai signals Beijing’s wish to keep policy continuity, adviser says

Taoran Notes said the first Liu-Tai talks lasted 45 minutes and communication would continue

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Chinese Vice-Premier Liu He was again Beijing’s lead negotiator when talks with US Trade Representative Katherine Tai were held this week. Photo: EPA-EFE

Published: 6:00pm, 28 May 2021Updated: 1:34am, 29 May 2021

The leading role of China’s top trade negotiator Liu He in talks with the US signalled Beijing’s intention to maintain policy continuity, and stressed the importance of trade in US-China relations, state media and diplomatic observers said.

Vice-Premier Liu’s first telephone call with US Trade Representative Katherine Tai on Thursday not only represented the first trade talks under the Biden administration, but also reaffirmed Beijing’s approach to bilateral trade talks with the US, they said.

An article published on Friday on Taoran Notes, a social media account affiliated with state-run Economic Daily that is used by Beijing to manage expectations on the trade talks, said Thursday’s dialogue lasted for 45 minutes and the two nations would have further dialogue on economic and trade matters.

“Liu’s leading role in economic talks has indicated Beijing’s decision to keep policy continuity and maintain trade relations with the new US administration,” a government adviser said.

In the phone call, Liu and Tai had a “candid, pragmatic and constructive” exchange and discussed “the importance of the trade relationship” between the two countries, according to statements released by both sides.

A separate article published on Thursday on Taoran Notes said trade cooperation remained the relatively stable part of US-China relations and had been one of few fields in which communication between the countries was intact.

“Trade is still very important to normalise the US-China relationship, to prevent relations from derailing and crossing the red line,” a post by Taoran Notes said.

But after the Liu-Tai discussion, the statements from the two sides did not mention the phase one trade deal signed in January 2020 when China was committed to a huge increase in purchases of US goods in exchange for a partial removal of tariffs imposed by Trump.