US and China hold more trade talks, but Kim visit overshadows discussions

Members of the US negotiation team leave a hotel for the second day of talks in Beijing, seeking to resolve a number of thorny issues that have threatened an all-out trade war between the world’s two biggest economies. (AFP)
Updated 08 January 2019

US and China hold more trade talks, but Kim visit overshadows discussions

  • Negotiators are seeking to resolve a number of thorny issues that have threatened an all-out trade war between the world’s two biggest economies
  • Without a resolution, punitive US duty rates on $200 billion in Chinese goods are due to rise to 25 percent from 10 percent on March 2

BEIJING: US officials held a second day of trade talks with Chinese counterparts in Beijing on Tuesday, overshadowed by an unannounced visit from North Korean leader Kim Jong Un.
This is the first time the two sides have met face-to-face since US President Donald Trump and President Xi Jinping agreed to a tariff truce during a meeting in Argentina on December 1.
The US delegation, which is led by Deputy US Trade Representative Jeffrey Gerrish and includes officials from the Treasury, Commerce, Agriculture and Energy departments, left its hotel without talking to reporters ahead of the talks.
Negotiators are seeking to resolve a number of thorny issues that have threatened an all-out trade war between the world’s two biggest economies.
These include more Chinese purchases of US goods and services to reduce a yawning trade gap, increased access to China’s markets, stronger protection of intellectual property and a reduction in Beijing’s subsidies to Chinese companies.
Neither side has yet provided any details about the talks in Beijing.
The temporary cease-fire came after the two sides imposed import duties on more than $300 billion of each other’s goods.
US Commerce Secretary Wilbur Ross said Monday that China’s economy is more vulnerable to the fallout from the trade war.
“It certainly has hurt the Chinese economy,” Ross told CNBC, noting that China exports many more goods to the United States than the other way around.
Ross said there was a “very good chance” of reaching an agreement, although monitoring compliance would present a challenge.
Without a resolution, punitive US duty rates on $200 billion in Chinese goods are due to rise to 25 percent from 10 percent on March 2.
The second day of trade negotiations coincided with an unannounced visit by North Korean leader Kim Jong Un for talks with Xi in Beijing, amid speculation of a second meeting between Kim and Trump.
Some analysts say that China — Pyongyang’s key diplomatic ally and main source of trade — could use Kim’s visit as a bargaining chip in the US trade talks.
But Bonnie Glaser, a senior adviser at the Center for Strategic and International Studies, said the timing of the North Korean leader’s arrival could be coincidental.
“I don’t see any linkage with the trade talks,” said Bonnie Glaser, a senior adviser at the Center for Strategic and International Studies.
“China’s ability to use (North Korea) as leverage has diminished considerably since Trump opened his own channel to Kim,” she said.
A separate geopolitical issue angered China on Monday when a US Navy guided-missile destroyer sailed near disputed islands in the South China Sea — a vast expanse claimed by Beijing.
China called it a violation of its sovereignty which has damaged “peace, safety and order” in the waterway.
The United States periodically sends planes and warships through the area to signal to Beijing its right under international law to pass through the waters.


Africa development bank says risks to continent’s growth ‘increasing by the day’

Updated 18 August 2019

Africa development bank says risks to continent’s growth ‘increasing by the day’

  • The trade dispute between US and China has roiled global markets and unnerved investors
  • African nations need to boost trade with each other to cushion the impact of external shocks

DAR ES SALAAM: The US-China trade war and uncertainty over Brexit pose risks to Africa’s economic prospects that are “increasing by the day,” the head of the African Development Bank (AfDB) told Reuters.
The trade dispute between the world’s two largest economies has roiled global markets and unnerved investors as it stretches into its second year with no end in sight.
Britain, meanwhile, appears to be on course to leave the European Union on Oct. 31 without a transition deal, which economists fear could severely disrupt trade flows.
Akinwumi Adesina, president of the AfDB, said the bank could review its economic growth projection for Africa — of 4 percent in 2019 and 4.1 percent in 2020 — if global external shocks accelerate.
“We normally revise this depending on global external shocks that could slowdown global growth and these issues are increasing by the day,” Adesina told Reuters late on Saturday on the sidelines of the Southern African Development Community meeting in Tanzania’s commercial capital Dar es Salaam.
“You have Brexit, you also have the recent challenges between Pakistan and India that have flared off there, plus you have the trade war between the United States and China. All these things can combine to slow global growth, with implications for African countries.”
The bank chief said African nations need to boost trade with each other and add value to agricultural produce to cushion the impact of external shocks.
“I think the trade war has significantly impacted economic growth prospects in China and therefore import demand from China has fallen significantly and so demand for products and raw materials from Africa will only fall even further,” he said.
“It will also have another effect with regard to China’s own outward-bound investments on the continent,” he added, saying these could also affect official development assistance.
Adesina said a continental free-trade zone launched last month, the African Continental Free Trade Area, could help speed up economic growth and development, but African nations needed to remove non-tariff barriers to boost trade.
“The countries that have always been facing lower volatilities have always been the ones that do a lot more in terms of regional trade and do not rely on exports of raw materials,” Adesina said.
“The challenges cannot be solved unless all the barriers come down. Free mobility of labor, free mobility of capital and free mobility of people.”