China to claim the US Rising as part of the trade break

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OSAKA, the Japanese-Chinese President Xi Jinping intends to present a series of terms to present President Trump which the United States should meet before Beijing is ready to resolve market trade, and ask questions about which both leaders will agree to re-launch talks.

Amongst the preconditions, Chinese officials who are familiar with the plan, said Beijing is calling for the US to end the ban on US technology sales to Chinese telecommunications giant. China to buy more US purchases than Beijing said it would be when the two leaders met in December.

The main US trade negotiator, Robert Lighthizer, and his Chinese partner, Liu He, spoke by phone this week on ways to get the talks back on the road and looking forward to meeting in person before a meeting. Saturday Presidents lunch after Group 20 summit in Osaka, said people were familiar with the debates. It is far from clear what both manage – and whether their managers will allow their work.

Despite its preconditions, it is not expected that Mr. Xi will build a confrontation with Mr Trump, according to Chinese officials. Rather, they say that it will set out what it sees as the best bilateral relations, including the Chinese aid on security issues targeting the United States, particularly Iran and North Korea.

US officials say they are going into the meeting as they want to know if their Chinese counterparts are willing to negotiate from where they broke. According to US officials and Chinese officials, both nations were close to trading deal in April when China faced provisions in the opinion of the United States. It is up to Beijing, United States officials feel, to get the talks back on the road.

“So we went in and thought we were dealing, and we went in and then they said,“ You know, we're not going to give you certain things that we agreed, ”said President Trump to God. Wednesday. If China does not get the talks back, Mr Trump said he was ready to go ahead with what was known as “Phase 2” – without tariffs currently estimated at the remaining $ 300 billion in Chinese imports. . He said he could start 10% tariffs on items including consumer mains such as clothing, mobile phones and laptops.

That was the tactic of Mr Trump who was used to the last $ 200 billion of goods – starting at 10% to put pressure on Beijing without severely disrupting the US economy, and then switching to 25 % when he felt China was lame.

A number of corporate lobbyists expect talks to draw up a plan to conclude negotiations by a given deadline. In this way, both sides will be under pressure to deliver – and President Trump is likely to refrain from moving tariffs forward during that period.

The Chinese leader is not expected to make large concessions at his meeting with Mr Trump. The reason for this is that there has been increased political pressure on the domestic frontage to stand firmly against Washington, which is seen among the political circles of the minority in China because China has abused a range of abuses, from defense. infringe intellectual property, state-owned enterprises improperly subsidize and spying on US businesses.

“The Chinese side hopes to set a tone for the relationship forward,” said a person who was made aware of China's plans in Beijing.

President Trump and his Chinese colleague, Xi Jinping, are to go together in Japan. Two of the world's most powerful leaders will have all the eyes, but can they resolve their disputes? Photo: Getty Images

Mr. Xi is expected to receive a tough audience in Mr. Trump, who continues to raise tariffs and is counting on his hard standing on China to be a political plus during his re-election offer. “The incentives for not dealing are getting stronger,” said Michael Pillsbury, a student of the Hudson Institute, who consults with the White House. To deal “Xi or Trump would be criticized. It didn't happen six months ago, ”said Mr Pillsbury.

A trade break, if it reaches it, could bring the two-side momentum and a possible path to making a raprochement of some other faces, from disputes about the widespread hold of China to the South China Sea to the US campaign in China. China's security concerns, which have been expanded in recent days to include more Chinese companies as well as Huawei, the world's largest telecommunications appliance maker.

The US negotiators have tried to keep the issue of Huawei separate from the trade talks, although Mr. Trump with Huawei packaging in trade deal. A spokesman for Chinese Ministry of Commerce insisted, at a regular briefing in Beijing on Thursday, the United States. “To immediately cancel the prevention and sanction measures against Huawei and other Chinese enterprises.”

As part of a deal, Beijing is trying to end all the additional tariffs imposed by the United States. Since the beginning of last year – 25% levied on $ 250 billion in Chinese imports. Beijing has also said that the U. claims for Chinese purchases of American goods should be “reasonable”, depending, according to Chinese officials, that they must be based on China's domestic demand, rather than claiming. China's purchases make it from other countries redirected.

Some Chinese government advisers have said that US negotiators have raised the purchase target to $ 300 billion a year in exports from current levels. In discussions last December, the figure discussed was $ 200 billion. That $ 200 billion is unlikely to be hit. He claimed more than doubled US exports to China, which was $ 120.1 billion in 2018 and $ 129.8 billion in 2017 before the trading battle began.

Chinese officials have repeatedly stated that the text of any agreement should be “balanced” – there should also be certain concessions for China. China has not announced its claims. In the past, Beijing has requested more high-tech exports from the US and the Chinese way to get visas and business permits in the US is easier.

In recent weeks, President Xi has been trying to increase Beijing's bargaining position with Washington. Last week, Mr Xi met with North Korean leader, Kim Jong Un in Pyongyang, and was the first Chinese leader to visit the recurring state in 14 years.

By strengthening China's links with North Korea, particularly at Pyongyang and Washington talks at hand, Mr Xi was sending a message to Mr Trump that China could help the United States of the tensions in Peninsula. Korean mitigation. Some US officials said they believe Mr Xi has a positive role.

Osaka's G-20 mood and agenda meeting is in sharp contrast to the last time the leaders met with Buenos Aires G-20 in December. Then hit both sides with a pleasant dinner. Chinese officials saw that the Chinese economy was prudent, and Mr Xi was keen to discuss business confidence.

Shortly after that, Canada took on a senior executive of Huawei seeking the US on charges for breaches of Iran's sanctions, and Washington began moving up to move to relieve technology to Huawei and portray it as a spyware threat. . Huawei rejects the allegations.

More nationalist voices in the Communist Party and the community gathered in Washington's apology for the use of the trade fight to halt the expansion of China and undermine the state-led economic model that provided strong growth for years.

Mr Trump is also in front of his critics – and many Democratic presidential candidates are willing to dilute it if he accepts what is considered a weak deal with China after hitting US consumers with higher bills. tariffs. At a primary Democratic debate on Wednesday night, four out of 10 China candidates chose the biggest threat facing the United States.

Write Lingling Wei at lingling.wei@wsj.com and Bob Davis at bob.davis@wsj.com

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