The U.S. and China are holding in-depth discussions on Phase One of a trade deal, with the cancellation of tariffs a key issue, according to Commerce Ministry spokesman Gao Feng.
"China has emphasized many times that the trade war began with additional tariffs and should end with the cancellation of additional tariffs," said Gao. “If both sides reach a 'Phase One' deal, the degree of tariff cancellation should fully reflect the importance of the 'phase one' deal; and its importance should be appraised by both sides together. Both sides are conducting in-depth discussions on this now.”
However, Gao did not appear to have addressed the issue of increased buys of U.S. commodities, a U.S. demand in the negotiations in the Phase One deal and a component of the deal that the Wall Street Journal reported Wednesday was the latest sticking point.
China sources indicated the country was reluctant to put specific dollar amounts into the agreement. But it is clear that getting tariffs removed is a key for the Chinese.
"Cancelling tariffs is in the interests of producers, consumers, China, the U.S., and the world," Gao stated.
President Donald Trump Wednesday indicated the talks between the two sides were going “rapidly” and he did not reprise his threat to raise tariffs on China in the event an agreement is not reached.
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