China and the United States may hold trade talks in August to assess the implementation of the first leg of the trade deal concluded in January, the South China Morning Post reported, citing an informed source.
Officially, Beijing and Washington continue to insist on their readiness to fulfill obligations under the trade agreement, but relations between them are tense on a number of issues.
US President Donald Trump allowed the closure of some Chinese diplomatic missions in the country after the Consulate General in Houston. On the air of Sputnik radio, political scientist Yevgenia Voiko told how, in her opinion, the situation would develop.
The publication notes that although China has significantly increased its purchases of agricultural products from the United States in recent months, due to the COVID-19 pandemic, these volumes are still far from what the Chinese side promised in the first phase of the trade deal. At the same time, according to the observers, mutual demands to close consulates general on each other’s territory, as well as a number of other issues, can undermine any progress achieved in trade issues.
According to a newspaper source, Vice Premier of the State Council of the People’s Republic of China Liu He and US Trade Representative Robert Lighthizer will take part in the negotiations. Under the terms of the deal, which was signed on January 15 and took effect a month later, high-level negotiations are to be held every six months. The source pointed out that the meeting will be “an important watershed” that will allow both parties to assess the progress of the deal.
At the same time, the source of the newspaper added that if due to the prevailing tension in relations between Washington and Beijing, the parties do not show much desire to hold a meeting at the moment, they may agree that the telephone conversation between Liu He, Robert Lighthizer and US Treasury Secretary Stephen Mnuchin, held on May 8, satisfied the “meeting” clause of the deal.
Earlier, US Secretary of State Mike Pompeo said that Washington expects China to fulfill its obligations under the first phase of the trade agreement, and also hopes to see a change in behavior on the entire spectrum. In turn, Chinese Foreign Ministry spokesman Hua Chunying said that China hopes that the trade deal with the United States can still be implemented.
The US and China signed the first leg of a trade agreement on January 15, in which Washington retained tariffs of 25% on Chinese goods worth about $ 250 billion, along with 7.5% on goods worth $120 billion. The agreement stipulates that the Chinese side will purchase American industrial goods worth $75 billion, energy resources – $50 billion, agricultural products – $40 billion, China will have to spend another $35-40 billion on services in the next two years. Thus, the US hopes to bring the imbalance in trade with China, which totaled hundreds of billions of dollars, to an “honest” indicator.