U.S.-China Trade Talks to Resume, but New Tariffs Could Complicate Them – The New York Times
“When I speak to C.E.O.s of leading Chinese and global companies, everyone is fretting about what the latest escalations mean for their businesses in the short term, and more worrisome, for their long-term strategy and investment plans,” said Fred Hu, founder of the investment firm Primavera Capital Group and former head of Goldman Sachs’s greater China business.
The two sides show little sign of backing down, however. Mr. Trump has gambled that China’s softening economy will put pressure on Beijing’s leaders to back down. Speaking with reporters on Wednesday, Mr. Trump cited the country’s slowdown, which he called, inaccurately, “the worst year they’ve had in 57 years.”
“And they want to make a deal,” Mr. Trump said. “We’ll see what happens.”
For their part, China’s leaders believe their own efforts to quell China’s dependence on debt are mostly responsible for the slowdown, and that they could reverse course if needed to bolster growth.
Next month’s talks would be the 13th time that senior-level trade negotiators have met. American negotiators traveled to Shanghai in July to meet briefly with their Chinese counterparts and left with an agreement to meet again in Washington on Sept. 1.
But the plans were disrupted when, one day after negotiators returned home, Mr. Trump said the United States would impose a 10 percent tariff on $300 billion worth of Chinese goods on Sept. 1, once again escalating trade tensions.
State controlled media has contended that the trade war is hurting American consumers more than Chinese companies and citizens. “The White House lifted a rock, which fell on the feet of the America public,” the Global Times, a nationalistic tabloid, wrote in a Sept. 1 editorial after the latest round of tariffs set in.