Trump Says China Called U.S. to 'Get Back to the Table' After Latest Tariff Spat--2nd Update
August 26 2019 - 5:23AM
Dow Jones News
By Rebecca Ballhaus
BIARRITZ, France -- President Trump said China called U.S.
officials on Sunday evening and said "let's get back to the table,"
a day after the White House said the president regretted not
escalating tariffs further on Chinese goods.
Speaking to reporters alongside Egyptian President Abdel Fattah
Al Sisi, Mr. Trump called the discussions a "very positive
development."
"They want to make a deal," he said. "That's a great thing."
Global stocks and government bond yields fell on Monday as the
recent escalation in tensions between the U.S. and China cast fresh
doubt on growth prospects. U.S. futures tied to the S&P, which
were briefly negative on Monday, turned positive after Mr. Trump
said China had called U.S. trade officials.
The Chinese government didn't immediately respond to Mr. Trump's
remarks or to requests to corroborate the president's account of a
phone call having taken place. Chinese government officials have
repeatedly said that Beijing wants to negotiate differences on
trade. On Monday, Beijing's lead trade negotiator, Vice Premier Liu
He, told a conference that China still wants to continue trade
talks with the U.S. following heightened tensions in the past few
days.
"We are willing to resolve the problems through negotiation and
cooperation in a calm manner," Mr. Liu said in the speech. The
Chinese government "strongly opposes an escalation of the trade
war" as it harms the interests of China, the U.S. and the world,
Mr. Liu added.
Mr. Trump also said Monday that French President Emmanuel Macron
had asked him before inviting Iranian Foreign Minister Javad Zarif
to come to Biarritz on Sunday. Mr. Zarif's unexpected arrival
appeared to catch the president's aides off guard.
A close aide to Mr. Macron said the US had been informed
beforehand about Mr. Zarif's visit to Biarritz.
"I spoke to President Macron yesterday. I knew everything he was
doing," Mr. Trump said. Of Mr. Zarif, he said, "I thought it was
too soon to meet. I said I don't want to meet right now."
A spokesman for Mr. Zarif said upon his touchdown in Biarritz
that he wouldn't be meeting with the U.S. delegation. The foreign
minister met with Mr. Macron and other French officials and briefed
the U.K. and Germany.
The renewed optimism from Mr. Trump about a trade deal with
China comes as tensions have risen in recent days. On Friday,
Beijing imposed new levies on U.S. goods, prompting the president
to respond by increasing tariffs on Chinese goods.
"We don't need China and, frankly, would be far better off
without them, " Mr. Trump tweeted on Friday. The president also
directed U.S. companies doing business with China to explore
relocating, an order he lacks the authority to give. Mr. Trump has
said he might rely on the Emergency Economic Powers Act of 1977,
which allows the president to block individual companies' actions
-- but only if he declares a national emergency first.
Later that evening, Mr. Trump left Washington for the Group of
Seven summit here, where he has met with world leaders who have
decried his tariffs and pressured him to end the trade war, saying
it has hampered global economic growth and weakened alliances.
On Sunday, the president whiplashed the summit here as he
suggested he was having "second thoughts" about escalating his
trade war with China, only to have the White House issue a
statement hours later saying the president's only regret was that
he hadn't increased tariffs on China further.
Mr. Trump on Monday also praised Chinese President Xi Jinping.
"One of the reasons that he's a great leader, Xi, and one of the
reasons China's a great country is they understand how life works,"
he said.
Mr. Trump said the U.S. had received two calls from China but
declined to say if he was speaking directly with Mr. Xi.
The U.S. president talked to reporters for several minutes about
the talks with China, he also complained about the media coverage
of the trade deal the U.S. has reached in principle with Japan and
of progress toward OK? Middle East peace.
-- Noemie Bisserbe in Biarritz and Grace Zhu in Bejing
contributed to this article.
Write to Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com
(END) Dow Jones Newswires
August 26, 2019 05:08 ET (09:08 GMT)
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