U.S., China Kick Off a New Round of Trade Talks -- Update
December 11 2018 - 5:53AM
Dow Jones News
By Bob Davis in Washington and Lingling Wei in Beijing
The U.S. and China started the latest round of trade talks with
a phone call involving Treasury Secretary Steven Mnuchin, U.S.
Trade Representative Robert Lighthizer and Chinese Vice Premier Liu
He.
The three senior officials discussed Chinese purchases of
agricultural products and changes to fundamental Chinese economic
policies during the phone call, said people familiar with the
conversation. They didn't provide further details.
As part of the trade truce reached between Mr. Xi and Mr. Trump,
Chinese officials are also considering making changes to the Made
in China 2025 plan, a state-led industrial policy aimed at enabling
Chinese companies to dominate a number of industries such as
artificial intelligence and robotics, said people familiar with the
matter. The policy is a focal point of the U.S.'s complaints that
Beijing engages in unfair trade practices that put foreign firms at
a disadvantage to Chinese companies.
China's Commerce Ministry, in a brief statement, said the
conversation--held Monday evening in the U.S., Tuesday morning in
China--was meant to "push forward with next steps in a timetable
and road map" for negotiations. Mr. Liu plans to travel to
Washington after the new year, people familiar with the matter
said.
The call follows up the 90-day tariff cease-fire agreed to by
Presidents Trump and Xi Jinping this month.
U.S. and Chinese officials have said that Beijing has planned to
announce purchases of soybeans as a goodwill gesture in the talks
which are expected to conclude around March 1.
During the negotiations, the U.S. said it won't raise tariffs on
$200 billion of Chinese goods to 25% from 10%, as it had planned to
do on Jan. 1.
By holding the phone call, both sides are suggesting a
willingness to keep the negotiations from getting derailed by
Chinese anger at the arrest in Canada at the U.S. request of a
senior executive at China's Huawei Technologies Co. The executive,
Meng Wanzhou, is the daughter of Huawei's founder, and the U.S. is
seeking her extradition for allegedly misleading banks about the
telecommunications equipment giant's business in Iran to evade U.S.
sanctions.
Chinese Foreign Minister Wang Yi said in remarks Tuesday that
Beijing would firmly resist "acts of bullying that wantonly
infringe upon the legitimate rights and interests of Chinese
citizens." His spokesman later told reporters Mr. Wang was
referring to all such instances, including Ms. Meng's case.
Still, state media and social-media censors have been careful
not to stir up anti-U.S. sentiment, in an apparent effort to
separate the Huawei issue from the trade negotiations. President Xi
has instructed his lieutenants to follow through on the agreement
he reached with Mr. Trump, according to Chinese officials.
Previously, Mr. Liu, China's chief trade negotiator has dealt
directly with Mr. Mnuchin. Mr. Trump named Mr. Lighthizer as the
lead negotiator on China issues and informed Mr. Xi while they
discussed the truce over dinner in Buenos Aires on Dec. 1.
Having both the Treasury secretary and trade representative on
the phone call suggests that Treasury will continue to have a
significant role in China talks. In the past, Treasury has focused
on the financial-services sector.
Among the stickiest structural issues the U.S. wants addressed
in the talks is protection of intellectual property. Beijing has
denied U.S. allegations that it requires foreign companies seeking
to do business in China to hand over technology. As part of the
Trump-Xi agreement, Beijing is willing to discuss longstanding U.S.
complaints about the lax intellectual property protections in
China, and Chinese officials acknowledge it is in the country's
interest to strengthen enforcement.
Wu Handong, an adviser to China's Supreme People's Court, told
The Wall Street Journal on Tuesday that China is speeding up
approving a revised patent law in part to address U.S. concerns.
Mr. Wu said the draft was submitted to China's legislature earlier
this month and is expected to be approved next year. Revisions, he
said, would subject violators to greater administrative penalties
and fines.
Liyan Qi and Grace Zhu contributed to this article.
Write to Bob Davis at bob.davis@wsj.com and Lingling Wei at
lingling.wei@wsj.com
(END) Dow Jones Newswires
December 11, 2018 05:38 ET (10:38 GMT)
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