BEIJING: China and the United States are in close communication and making preparations for achieving positive progress in their next round of trade talks in October, the Chinese Ministry of Commerce said this week.
But analysts cautioned that even if an agreement is reached next month, it would only be the first step towards ultimately resolving major differences between the two countries, and the US must be consistent in implementing any agreement reached to ensure healthy bilateral economic relations.
“Our stance is always consistent and clear,” said Gao Feng, a Commerce Ministry spokesman, adding that the US should “meet China halfway” and find mutually beneficial, win-win solutions through dialogue and consultation on the basis of equality and mutual respect.
Gao pointed out that Chinese companies have recently concluded significant purchases of soybeans and other products from the US in line with World Trade Organisation (WTO) rules and market principles.
The Customs Tariff Commission of the State Council will exclude these agricultural products from additional tariffs.
China made the move following the US announced on September 17 that it was exempting over 400 categories of Chinese products from additional tariffs.
China has huge market demand for high-quality agricultural products, Gao said, adding that China and the US are highly complementary in the field of agriculture and have broad prospects for cooperation.
Analysts said that even if the agreement was reached in the upcoming talks, its smooth implementation would hinge on the consistency of US policies.
“Trade negotiations between the two countries are very complex,” said Chen Dongqi, an economist at the National Development and Reform Commission’s Academy of Macroeconomic Research.
“Government officials from both sides are now coordinating with different government branches to lay the groundwork and settle details for the talks next month.”
Wang Huiyao, President of the Centre for China and Globalisation, a Beijing-based think tank, said both countries should be aware that reaching an agreement is only the beginning of the process. They should also continue to seek pragmatic solutions to end the prolonged dispute.
Wei Jianguo, Vice-President of the Beijing-based China Centre for International Economic Exchanges, said, “More importantly, the US must ensure the consistency of its policies to avoid back-and-forth in trade talks and unnecessary political conflicts.”
