China warns U.S. won't get trade benefits if tariffs implemented as talks end

Reuters  |  BEIJING 

By Martin and Michael Martina

A short statement, carried by the official Xinhua agency, made no mention of any specific new agreements after U.S. Commerce met Chinese

It referred instead to a consensus they reached last month in Washington, when agreed to significantly increase its purchases of U.S. goods and services.

"The two sides had good communication about implementing the consensus reached in and on many areas such as agriculture and energy, achieving positive and concrete progress," the agency said, adding details would be subject to "final confirmation by both parties".

The and have threatened tit-for-tat tariffs on goods worth up to $150 billion each.

Xinhua said China's attitude has been consistent, which is that it is willing to increase imports from all countries, including the

"Reform and opening up and expanding domestic demand are China's national strategies. Our established rhythm will not change," it added.

"The achievements reached by China and the United States should be based on the premise that the two sides should meet each other halfway and not fight a trade war," Xinhua said.

"If the United States introduces trade sanctions including tariffs, all the economic and trade achievements negotiated by the two parties will be void."

There was no immediate comment or statement from the U.S. delegation or from Ross himself.

At the end of last month's talks the two countries put out a joint statement.

But just when it appeared a trade truce between the two economic heavyweights was on the cards, the last week warned it would pursue tariffs on $50 billion worth of Chinese imports, as well as impose restrictions on Chinese investments in the United States and tighter export controls.

Ross arrived in on Saturday for talks after the renewed tariff threats against China, and with key U.S. allies in a foul mood towards Washington after they were hit with duties on and aluminium.

'FRIENDLY AND FRANK'

Addressing Liu earlier in the day, Ross praised the tone of their interactions.

"Our meetings so far have been friendly and frank, and covered some useful topics about specific export items," Ross said, in brief comments before reporters.

Liu spoke only to welcome Ross.

Neither man has made any other comments to the media.

Ross is expected to leave Beijing later on Sunday.

Liu, a Harvard-trained who is a trusted confidant of Chinese Xi Jinping, is China's in the trade dispute.

said on Saturday the United States wanted this weekend's talks to result in structural changes to China's economy, in addition to increased Chinese purchases of American goods.

The purchases are partly aimed at shrinking the $375 billion U.S. goods trade deficit with China.

Mnuchin, speaking at a meeting in where he was the target of U.S. allies' anger over and aluminium tariffs, said the China talks would cover other issues, including the Trump administration's desire to eliminate Chinese joint venture requirements and other policies that effectively force

"I want to be clear, this isn't just about buying more goods, this is about structural changes," Mnuchin said.

"But I also fundamentally believe that if there are structural changes that allow our companies to compete fairly, by definition, that will deal with the trade deficit alone."

The U.S. delegation at the Beijing talks included Under of Treasury for International Affairs David Malpass, Under for Trade and Foreign Agricultural Affairs Ted McKinney, and

Other officials and technical experts from the Department of Commerce, Department of Treasury, United States Trade Representative, Department of Agriculture, and also took part, the said.

China's delegation included central Yi Gang, Zhong Shan, and Ning Jizhe, a of the powerful planning body the

Ross, who was preceded in Beijing last week by more than 50 U.S. officials, is expected during the two-day visit to try to secure long-term purchases of U.S. farm and commodities to help shrink the U.S. trade deficit.

The U.S. team also wants to secure greater intellectual property protection and an end to Chinese subsidies that have contributed to overproduction of and aluminium.

(Writing by Ben Blanchard; Editing by Robert Birsel)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, June 03 2018. 12:19 IST