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China Briefing
This Week in AsiaOpinion
Wang Xiangwei

China Briefing | As US-China trade war talks enter the final stretch, is Beijing ready to tackle its structural issues?

  • Though there might not be a deal by the time Trump meets Xi, China can address US concerns by improving credibility over everything from IP protection to subsidies for its favoured industries

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It is in China’s best interests to better protect IP – over the past seven years, it has been the undisputed world leader in patent applications worldwide. Photo: EPA
As top Chinese and American negotiators huddled in Beijing on Thursday and Friday to haggle over a comprehensive agreement to defuse the trade war, international reactions have been a mixed bag of trepidation and optimism.

Following the conclusion of the two-day negotiations, both sides cited “progress” and agreed to continue talks in Washington next week, with the March 1 deadline to prevent higher tariffs on imports from China less than two weeks away.

In a meeting with United States Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, Chinese President Xi Jinping expressed hope that both sides would make unremitting efforts to achieve a win-win agreement.
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Throughout last week, his American counterpart Donald Trump also raised hopes by saying the talks in Beijing went “very well” and he would meet Xi “very soon”, even though the two may not do so before March 1. But, characteristically, he also dangled the prospect that he could delay the deadline to ensure the success of the talks.

At the time of writing on Friday evening, both sides remained tight-lipped about the meetings, but large gaps are still believed to remain over the so-called structural issues holding up the trade talks – Chinese theft of US intellectual property, forced transfer of technology, weak protection of IP rights, industrial subsidies for favoured industries and equal treatment for foreign enterprises. In particular, the two sides are still sparring over how an agreement should be verified and enforced.

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