Chinese vice premier arrives in United States for economic, trade consultations

Chinese vice premier arrives in United States for economic, trade consultations

China welcomes this latest decision ahead of high-level trade talks aimed to de-escalate the trade standoff between the two countries this week in Washington.

He has proposed tariffs on $50 billion in Chinese imports to punish Beijing for forcing American companies to hand over technology in exchange for access to China's vast market.

Trump has long-promised to crack down on China and raised concerns about an all-out trade war after threatening $150 billion in tariffs and prompting China to retaliate. A number of retailers reported Tuesday that the discussing lifting the ZTE penalties to keep away from agricultural sanctions China is making ready to impose on the U.S.

The prospect of an escalating trade war has rattled financial markets and alarmed many businesses.

But he offered an olive branch in calling on US officials to revisit penalties for Chinese company ZTE Corp for flouting USA sanctions on trade with Iran and North Korea.

Yet some trade analysts have suggested that Trump's unexpected ZTE overture could give USA and Chinese negotiators something to work with. ZTE agreed to plead guilty and pay about $1 billion in fines.

The surprising move came less than a month after the United States imposed a ban on American firms selling components and services to ZTE.

Commerce Secretary Wilbur Ross said during an appearance at the National Press Club in Washington Monday that "ZTE did do some inappropriate things".

The Trump administration is considering an arrangement under which the ban on ZTE would be eased in exchange for elimination of new Chinese tariffs on certain USA farm products, including pork, fruits, nuts and ginseng, two people familiar with the proposal told Reuters.

"The president is transaction-oriented", said Christine McDaniel, senior research fellow at George Mason University's Mercatus Center. Marco Rubio, R-Fla., tweeted Sunday that it would be "crazy" to allow ZTE to operate in the USA without tighter restrictions.

"He's anxious about the midterms and the impact of his trade policy on farmers", Perry said.

William Perry of the Seattle law firm Harris Bricken, who runs the US China Trade War blog, said he thought the president has belatedly realized that a trade war would hurt some of his staunchest supporters - farmers in the American heartland who rely on exports.

President Trump's plan to ease restrictions on China's ZTE Corp is running into opposition on Capitol Hill.

Sen. Marco Rubio, R-Fla., who with Sen.

"This president has taken China to task for its unfair trade practices", he said.

Liu, also a member of the Political Bureau of the Communist Party of China Central Committee and chief of the Chinese side of the China-U.S. comprehensive economic dialogue, leads a delegation whose members come from major economic sectors of the Chinese government. "And that's the area we will be exploring very, very promptly". "So they can't say they don't know what we're asking for", he said. The U.S. accused ZTE of misleading American regulators over sanctions against North Korea and Iran.

Top Senate Democrat Chuck Schumer accused Trump of "backing off" and "doing a 180 on China".

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