Tags: China | Trump Administration | kudlow | china | trade | talks

Kudlow: Trade Talks With China Will Be 'Determinative'

china-us summit expressed in a chess game

Jae Young Ju | Dreamstime.com

By    |   Thursday, 24 January 2019 02:15 PM

White House economic adviser Larry Kudlow said on Thursday the upcoming trade talks between the United States and China would be crucial in determining whether the globe's two largest economies could clinch a deal on trade.

Chinese Vice Premier Liu He will meet with U.S. Trade Representative Robert Lighthizer in Washington from Jan. 30-31.

"I think the (Chinese Vice Premier) Liu He talks will be determinative," Kudlow said in an interview with Fox News Channel,  adding that Trump has told him that he remains “rather optimistic.”

“The scope of the talks are huge and the talks are going to continue at the highest level,” said Kudlow. Right now “we have nothing on paper, there is no contract, there is no deal.”

Hours before Kudlow spoke, Commerce Secretary Wilbur Ross said the U.S. and China are eager to end their trade war, but the outcome will hinge on whether Beijing will deepen economic reforms and further open up its markets.

“The harder issues are the ones that deal with structural reforms, particularly intellectual property rights,” said Ross in an interview on Bloomberg TV on Thursday, adding that China is moving up the technology value chain and also has an interest in protecting its own IP. “The equal market access is another very big issue. The idea of forced technology transfers is a huge issue.”

Ross said negotiators are making progress on “easier” issues like how much of certain American products the Chinese will agree to buy, such as soybeans and liquefied natural gas. China has offered to go on a six-year buying spree to ramp up imports from the U.S. by more than $1 trillion, Bloomberg News. reported.

The comments from the senior Trump administration officials come with just over five weeks to go before a deadline to conclude a deal. If that doesn’t happen, the Trump administration has threatened to raise the tariff rate on $200 billion in Chinese good to 25 percent from 10 percent.

While the two sides appear to be in close contact as the deadline approaches, it’s also apparent that there’s some way to go before they resolve their differences. Investors have been jittery this week about the prospects of a deal, as news trickled out that substantial differences remain, including a Bloomberg News report that the governments are struggling to bridge the gap on intellectual-property issues.

The IMF this week downgraded its global outlook for the second time in three months, warning of mounting risks including an escalation of the trade war and tightening credit.

Material from Bloomberg and Reuters has been used in this report.

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White House economic adviser Larry Kudlow said on Thursday the upcoming trade talks between the United States and China would be crucial in determining whether the globe's two largest economies could clinch a deal on trade.
kudlow, china, trade, talks
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2019-15-24
Thursday, 24 January 2019 02:15 PM
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