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
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.
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.
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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.”
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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.
“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.