US, China could sign partial trade pact next month, Latest World News - The New Paper

US, China could sign partial trade pact next month

This article is more than 12 months old

Mini-deal covers farm exports, intellectual property, financial services

WASHINGTON: US President Donald Trump said progress in developing the text of a partial trade pact with China means he will likely be able to sign it next month.

Mr Trump remains upbeat on the chances Beijing and Washington will seal the mini-deal he announced earlier this month - marking a cooling-off period in the two nations' trade war.

"We'll be able to, we think, sign a completed document with China on phase one," Mr Trump said at the White House.

US Trade Representative Robert Lighthizer said efforts to commit the agreement to paper before the Asia-Pacific Economic Cooperation summit in Chile next month are "on track" though some work remains to be done.

"Our target is to have the phase one deal by the time you go to Chile," Mr Lighthizer told Mr Trump.

Mr Trump has said he expects to sign the partial deal on the sidelines of the summit when he meets Chinese President Xi Jinping.

While details are scant, the new mini-deal includes a surge in Chinese purchases of American farm exports and also covers intellectual property, financial services and currency exchange, according to the White House.

Mr Trump said on Monday the Chinese "have started the buying", AFP reported.

China sounded a positive note at a defence forum being held in Beijing, with the Vice-Minister of Foreign Affairs saying they wanted "China-US relations based on co-ordination, co-operation and stability".

With hundreds of billions of dollars in two-way trade now subject to additional tariffs, there are mounting signs the trade war - now in its second year - has damaged the world economy, adding to pressure on both sides to strike a deal.

"We don't approve the tactic of brandishing the baton of tariffs at every turn and exerting maximum pressure on China," said Vice-Minister Le Yucheng.

"This practice is old thinking and will not work."

No country can prosper without working with other nations, Mr Le said yesterday at the Xiangshan Forum in Beijing, which China styles as its answer to the annual Shangri-La Dialogue security forum in Singapore, Reuters reported.

Mr Le said: "As long as we respect each other and seek equal cooperation, there are no disagreements that cannot be resolved between China and the United States.

"What China wants is to deliver a better life for the Chinese people. We don't want to take anything from anyone else. There's no such thing as China replacing anyone or threatening anyone."

However, US Commerce Secretary Wilbur Ross said earlier that US is not rushing to sign on the dotted line next month.

"We would like to make a deal," he told Fox Business.

"But from our point of view, it has to be the right deal and it doesn't have to be in November."

While the White House has said the "phase one" deal touches on major issues, Mr Ross said the heaviest lifting remained to be done.

"The real question is, do we get to an early signing of phase one?

"Second, how far do we get toward phase two or two and three? Two and three are really where the meat is," said Mr Ross.