BEIJING (AP) – A list of hard-line demands that the Trump administration handed China this week could make it even more difficult to resolve a trade conflict between the world’s two largest economies.
That’s the view of trade analysts who say the U.S. insistence that Beijing shrink America’s gaping trade deficit with China by $200 billion by the end of 2020, among other demands, is more likely to raise tensions than to calm them. The thrust of the demands is that China should give up policies that favor domestic companies especially in a strategic rivalry with the U.S. over technology – policies Beijing considers core to its state-driven economic model and vital for its future growth.
An editorial on Saturday by China’s ruling Communist Party’s mouthpiece, the People’s Daily, said Beijing was willing to engage in discussions that brought benefits to both sides but would not give in to strong-arm tactics that hurt China’s interests.
“In the face of the U.S.’s fierce offensive of protectionism, China resolutely defends its national interest,” the People’s Daily said. “It will never trade away its core interests and rejects the U.S.’s demand for an exorbitant price.”
A U.S. official confirmed the authenticity of a document outlining U.S. priorities that was presented to China ahead of two days of trade talks that ended Friday. The official spoke on condition of anonymity because of the confidential nature of the talks.