📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

China officials optimistic for trade deal with U.S. despite APEC setback

Published 10/31/2019, 12:28 AM
China officials optimistic for trade deal with U.S. despite APEC setback

By Keith Zhai

SINGAPORE (Reuters) - Chinese officials voiced optimism that Beijing and Washington can find a way to clinch the so-called Phase One trade deal next month, despite the abrupt cancellation of the summit where the heads of state were to meet to formally sign the deal.

China's cabinet adviser Zhu Guangyao told Reuters on the sidelines of a forum in Singapore on China-U.S. relations that he is still optimistic that a deal can be signed in November if both sides maintain close communication via diplomatic channels.

"Based on (the principles of) mutual trust and mutual benefits, I believe both countries can achieve great success," said Zhu, who was directly involved in the bilateral trade talks as a vice finance minister until his retirement in 2018.

In Beijing, China's commerce ministry said bilateral trade negotiations with Washington will proceed according to plan and that the talks are progressing well.

The ministry, in a statement, said the two sides remain in close communication and that the lead trade negotiators will hold a telephone call on Friday.

The cancellation of the Asia-Pacific Economic Cooperation (APEC) summit in Chile - announced as social unrest continued to rock Santiago - emerged as the latest twist in a 15-month-old trade dispute that has roiled markets and stoked fears about a global recession.

U.S. President Donald Trump said this week he hoped to sign an interim trade deal with Chinese President Xi Jinping on the sidelines of the APEC summit. The White House said the United States still expects to sign a deal with China next month but no alternative location has been set yet.

Wei Jianguo, vice chairman of Chinese state-backed think tank and forum co-host China Center for International Economic Exchange, told Reuters he believes the two countries can reach an agreement and the two leaders could meet and sign the deal on neutral soil.

"The cancellation of the Chile summit has zero impact on trade deal between China and the U.S.," said Wei. "There are lots of options out there for the two leaders to sign the deal. The deal can be signed in China, the U.S., or any third-party countries like Singapore."

China will consider any offers from the U.S. as long as they do not compromise Beijing's core interests such as national security and territorial integrity, he said.


Some policy hawks in Washington have advocated a so-called decoupling of the U.S. and Chinese economies, accusing Beijing of actively trying to steal U.S. technology and creating one-sided economic and trade relations in Beijing's favor. They have called for U.S. firms to reduce their supply chain dependence on China and limit Chinese firms' access to U.S. technology.

But Chinese officials maintained that such a "decoupling" would be impossible and too damaging for both economies.

"(Decoupling) would be a disaster for both China and the U.S. and the whole world," former Chinese vice premier Zeng Peiyan told the forum on Wednesday, calling the idea "an extreme expression" of trade protectionism and unilateralism.

"We expect that the U.S. will play a positive role, rather than focus on decoupling."

Cabinet adviser Zhu also said that Beijing will further push forward plans to lure more foreign companies into the country next year.

Foreign firms and governments of China's top trading partners have long complained of regulations and policy restricting market access to the world's No. 2 economy, though Beijing has repeatedly vowed to open up its markets further.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.