Advertisement
Advertisement
US-China trade war
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
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

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
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.

02:23

Gloves off at top-level US-China summit in Alaska with on-camera sparring

Gloves off at top-level US-China summit in Alaska with on-camera sparring

The government adviser said: “Without the trade deal, bilateral conflicts would face greater risks of losing control. The deal, for good or bad, can lend a buffer to bilateral relations.”

The adviser said the two countries were far from being on the same page, and wide rifts remained, but Beijing could take concrete action to show sincerity in opening up and to shore up external confidence.

“Talk alone won’t solve fundamental problems because both sides lack trust,” the adviser said. “China wants to cooperate, while the US has chosen confrontation and competition – which is unlikely to be reversed.”

Relations between the world’s largest two economies have plunged to their lowest level in four decades, with tensions over technology, the origins of the coronavirus, Hong Kong, Xinjiang and Taiwan.

What is the US-China trade war?

The administration of US President Joe Biden has largely continued its predecessor’s confrontational strategy. Kurt Campbell, who is in charge of Asia-Pacific for the White House, said on Wednesday that the period of US engagement with China had “come to an end” and competition would be the “dominant paradigm” for the relationship.

Meanwhile, US Defence Secretary Lloyd Austin told a Congressional hearing on Thursday that the US defence budget should focus on “matching the pacing challenge” from China.

Shi Yinhong, a professor of international relations with Renmin University, said trade was less decisive a factor in relations than three years ago when Trump initiated the trade war with China, but may offer some room for compromise.

US Trade Representative Katherine Tai is seen on May 12 testifying before the Senate Finance Committee in Washington about President Joe Biden’s 2021 trade policy agenda. Photo: AFP

“Trade relations still matter, but it is far from the decisive factor in overall ties,” Shi said. “We are still in the trade war, and there is no sign yet of fundamental improvement.

“The US pressed China hard on buying American products and blamed China over intellectual property protection issues. But those are not severe enough issues to cross Beijing’s bottom line of no interference in its internal affairs, so room for dialogue remains.”

Liu had led the Chinese delegation in previous trade exchanges with the administration of former US president Donald Trump. Two weeks ago China’s Ministry of Commerce denied a media report that Liu, turning 70 next year, might be replaced by Vice-Premier Hu Chunhua, 58, as the top economic envoy to the US.

Observers said Liu, who oversees economic, financial, innovation and state firm reform in China, remained influential in trade issues, and the Chinese statement about the trade talks indicated no intention in Beijing to replace him, although he was likely to retire after a key Communist Party meeting next year.

This article appeared in the South China Morning Post print edition as: Liu He’s lead role in talks a ‘sign of policy continuity’
7