Analysts us trade demands could make deal with china harder – naples herald electricity cost by state

After the talks ended, China’s Commerce Ministry said the two sides had agreed to establish a mechanism to try to work through their dispute, though differences remained, Chinese state media reported. The report did not give specifics, suggesting that little progress had been achieved.

It included demands that China immediately stop providing subsidies to industries listed in a key industrial plan. China must end some of its policies related to technology transfers, a key source of tension underlying the dispute, the list also says.

The U.S. wants China not to retaliate against U.S. measures currently being pursued against it. For instance, the U.S. says China should agree not to target U.S. farmers or agricultural products and “not oppose, challenge or otherwise retaliate” when the U.S. moves to restrict Chinese investment in the U.S. in sensitive sectors.

American analysts were struck by the aggressiveness of the Trump team’s demands. Eswar Prasad, a professor of trade policy at Cornell University, said the hard-nosed approach “makes it harder to envision a path toward a negotiated settlement.”

Prasad said the Chinese are open to negotiations on opening their market wider and doing a better job of protecting intellectual property. “Beijing is clearly in no mood, however, to meet the U.S. team’s expectation of capitulation in the face of threats of tariffs and other trade sanctions,” he said.

“When it comes to negotiations, both sides can provide a list of requests and we will seek common ground while reserving our differences,” Yu said. “If one side provides a list with unreasonable requests, the Chinese government is unable to accept it.”

“China won’t be frightened by this kind of threat,” wrote Hu Xijin, the chief editor of the Global Times, a nationalistic tabloid affiliated with the Communist Party mouthpiece, in a post on the Sina Weibo website. Hu said he believed China would engage in talks seriously but also be fully prepared for them to fail.

“We’ve been saying that the Trump administration needs to define success and what specific outcomes it is seeking,” said Jake Parker, vice president for China of the U.S.-China Business Council. The list submitted to China helps “lead to a solution and avoid tariffs and other sanctions,” he said.

The group led by Mnuchin included Commerce Secretary Wilbur Ross, U.S. Trade Representative Robert Lighthizer and White House trade advisor Peter Navarro, a fierce China critic. But the officials are seen as holding conflicting views on how to resolve the dispute. That could have undermined their ability to negotiate with the Chinese.

The dispute will be tough to resolve because the fundamental issue is that the U.S. wants to stop China from moving up the so-called value chain as it transforms into an advanced economy, said Louis Kuijs, head Asia economist at Oxford Economics. But “there’s no way that China’s going to change its strategy on that.”

This is “much more than just a trade dispute,” Kuijs said. “This is very much about economic strategy and the U.S. coming to grips with a big country running its economy in a way that the U.S. is uncomfortable with, and becoming successful, and starting to threaten U.S. dominance.”

ZTE pleaded guilty in March 2017 and agreed to pay a $1.19 billion penalty for having shipped equipment to Iran and North Korea in violation of U.S. regulations. The U.S. Commerce Department said employees involved were paid bonuses instead of being punished.