China says US trade row can be resolved through mutual respect

A ship at Qingdao port in Shandong province. China and the US are locked in a trade dispute which has seen them slap tariffs on each other’s goods. (AFP)
Updated 12 July 2019

China says US trade row can be resolved through mutual respect

  • Washington had sharply raised tariffs after talks broke down in May and Beijing followed suit

BEIJING: China and the US can find a way to resolve their trade dispute if each other’s concerns are taken into consideration, the commerce ministry said on Thursday.
Ministry spokesman Gao Feng also said during a weekly news briefing that China hopes the US will remove sanctions on Huawei Technologies as soon as possible and clear a path for healthy bilateral relations.
The two countries are in the midst of a year-long trade dispute which has seen them slap tariffs on each other’s goods. China has vowed not to give in on issues of principle nor under US pressure.
“Trade teams from both sides, according to the consensus reached at Osaka by leaders from both countries, will restart economic and trade negotiations on the basis of equality and mutual respect,” said Gao.
“China believes that both sides can find a way to resolve the issue if each other’s reasonable concerns are taken into consideration through a dialogue of equals.”

FASTFACT

In May the US raised tariffs on $20 billion of Chinese products to 25 percent from 10 percent while China retaliated with tariff on $60 billion of US goods.

US President Donald Trump and Chinese President Xi Jinping agreed in Japan last month to another trade cease-fire, thanks to Trump’s promise not to impose new tariffs on Chinese goods and to ease restrictions on Huawei. But no deadline has been set for the process to conclude, leaving the possibility of protracted negotiations.
Washington had sharply raised tariffs after talks broke down in May and Beijing followed suit.
On Tuesday, Chinese Vice Premier Liu He exchanged views with US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin in a phone call on implementing an agreement reached between Xi and Trump at their meeting in Osaka, the Ministry said in an earlier statement, without elaborating.
White House economic adviser Larry Kudlow said that the phone call was “constructive” and the two sides were talking about having a face-to-face meeting.
The Commerce ministry’s Gao declined to provide more information on the details of the call and plans for more talks in the next stage.


Oil prices rise as faith in supply cuts grows

Updated 26 May 2020

Oil prices rise as faith in supply cuts grows

  • Producers are following through on commitments to cut supplies as fuel demand picks up with coronavirus restrictions easing
  • OPEC+ countries are due to meet again in early June to discuss maintaining their supply cuts to shore up prices

NEW YORK: Oil prices rose on Tuesday, supported by growing confidence that producers are following through on commitments to cut supplies and as fuel demand picks up with coronavirus restrictions easing.
Brent crude futures were up 45 cents, or 1.3%, at $35.98 a barrel by 1:09 p.m. EDT (1709 GMT). US West Texas Intermediate (WTI) crude futures gained 89 cents, or 2.7%, to $34.14.
The Organization of the Petroleum Exporting Countries and other leading oil producers including Russia, a group known as OPEC+, agreed last month to cut their combined output by almost 10 million barrels per day in May-June to shore up prices and demand, which has been hit by the coronavirus pandemic.
Russian Energy Minister Alexander Novak is due to meet oil major producers on Tuesday to discuss the possible extension of the current level of cuts beyond June, sources familiar with the plans told Reuters.
The RIA news agency said Russian oil production volumes were near the country’s target of 8.5 million bpd for May and June.
On Monday, Russia’s energy ministry quoted Novak as saying that a rise in fuel demand should help to cut a global surplus of about 7 million to 12 million bpd by June or July.
OPEC+ countries are due to meet again in early June to discuss maintaining their supply cuts to shore up prices, which are still down about 45% since the start of the year.
“The 16 million bpd oversupply in crude during April could be reversed altogether by June, helped by a 4 million-bpd recovery in crude demand and a 12 million-bpd cut in crude supply,” said Bjornar Tonhaugen, head of oil markets for Rystad Energy.
“OPEC+ is pulling the most weight by far, effectively reducing supply by nearly 9 million bpd while non-OPEC+ crude supply is down by more than 3.5 million bpd from March levels.”
In an indication of lower supply in the future, data from energy services business Baker Hughes showed that the US rig count hit a record low of 318 last week.