Trade war fears ebb as u.s., china agree to continue talks new hampshire 4 gas laws

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Over the weekend, the two sides pledged to keep talking about how China could import more energy and agricultural commodities from the United States so as to narrow the $335 billion annual U.S. goods and services trade deficit with China, although details and a firm timeline were thin.

The biggest immediate beneficiary appeared to be China, which won a reprieve from threatened tariffs on $50 billion of its exports to the United States as well as a lifeline for ZTE Corp, China’s second biggest telecom equipment maker whose existence had been threatened by U.S. sanctions.

Threatened U.S. restrictions on Chinese investments in the United States also appeared to be put on the back burner. The U.S. Treasury said it met a legal obligation to report progress to President Donald Trump on the development of such restrictions, but it declined to provide details.

Economists at Morgan Stanley estimated that exports of U.S. agricultural products, primarily beef, and energy, mostly liquified natural gas, could add between $60 billion and $90 billion to sales to China over a period of years. That is far less than the $200 billion reduction in China’s trade surplus that Trump demanded at the start of talks.

Questions also remained over the administration’s handling of ZTE. The Chinese company was sanctioned by Washington after it was caught illegally shipping goods to Iran and effectively put out of business, but its fate was made a precondition of last week’s trade talks in a conversation between Trump and President Xi Jinping.

Washington had threatened to impose tariffs on $50 billion of Chinese imports unless Beijing rectified its theft of U.S. intellectual property. After China responded with its own tariffs on U.S. agriculture, Trump threatened to impose duties on an additional $100 billion of Chinese goods, a move that hit global stock markets hard due to fears of rising protectionism.

Mei Xinyu, a Commerce Ministry researcher, wrote on the WeChat account of the overseas edition of the ruling Communist Party’s official People’s Daily that the agreement preserved China’s right to develop its economy as it sees fit, including moving up the value chain.

The official China Daily said everyone could heave a sigh of relief at the ratcheting down of the rhetoric, and cited China’s chief negotiator, Vice Premier Liu He, as saying the talks had proved to be “positive, pragmatic, constructive and productive.”

James Zimmerman, a Beijing-based lawyer and a former chairman of the American Chamber of Commerce in China, said the Trump administration’s decision to walk back its threatened trade actions was premature and a “lost opportunity” for American companies, workers and consumers.

Over the weekend, the two sides pledged to keep talking about how China could import more energy and agricultural commodities from the United States so as to narrow the $335 billion annual U.S. goods and services trade deficit with China, although details and a firm timeline were thin.

The biggest immediate beneficiary appeared to be China, which won a reprieve from threatened tariffs on $50 billion of its exports to the United States as well as a lifeline for ZTE Corp, China’s second biggest telecom equipment maker whose existence had been threatened by U.S. sanctions.

Threatened U.S. restrictions on Chinese investments in the United States also appeared to be put on the back burner. The U.S. Treasury said it met a legal obligation to report progress to President Donald Trump on the development of such restrictions, but it declined to provide details.

Economists at Morgan Stanley estimated that exports of U.S. agricultural products, primarily beef, and energy, mostly liquified natural gas, could add between $60 billion and $90 billion to sales to China over a period of years. That is far less than the $200 billion reduction in China’s trade surplus that Trump demanded at the start of talks.

Questions also remained over the administration’s handling of ZTE. The Chinese company was sanctioned by Washington after it was caught illegally shipping goods to Iran and effectively put out of business, but its fate was made a precondition of last week’s trade talks in a conversation between Trump and President Xi Jinping.

Washington had threatened to impose tariffs on $50 billion of Chinese imports unless Beijing rectified its theft of U.S. intellectual property. After China responded with its own tariffs on U.S. agriculture, Trump threatened to impose duties on an additional $100 billion of Chinese goods, a move that hit global stock markets hard due to fears of rising protectionism.

Mei Xinyu, a Commerce Ministry researcher, wrote on the WeChat account of the overseas edition of the ruling Communist Party’s official People’s Daily that the agreement preserved China’s right to develop its economy as it sees fit, including moving up the value chain.

The official China Daily said everyone could heave a sigh of relief at the ratcheting down of the rhetoric, and cited China’s chief negotiator, Vice Premier Liu He, as saying the talks had proved to be “positive, pragmatic, constructive and productive.”

James Zimmerman, a Beijing-based lawyer and a former chairman of the American Chamber of Commerce in China, said the Trump administration’s decision to walk back its threatened trade actions was premature and a “lost opportunity” for American companies, workers and consumers.