Chinese President Xi Jinping and President Donald Trump at the G-20 Summit in Osaka on June 29, 2019.
Brendan Smialowsi | AFP | Getty Images
BEIJING – First-stage trade agreements between China and the US are expected, although it is not clear when the leaders of the two countries can meet to conclude the agreement.
"China is willing to work together to properly set up areas of common interest and seek a first trade agreement, based on equal and mutual respect with the US," Gao Feng, a spokesman for the Chinese Department of Commerce said on Thursday. Translation of his notes in Mandarin CNBC.
Gao also stated that the "external rumors" on trade negotiations were not accurate and noted that both trade delegations are in close communication.
Thursday, Reuters said sources said the so-called first-stage agreement between the US and China could only be concluded next year when Beijing seeks greater tariff cuts and US President Donald Trump's administration pushes back with its own Increased decline
Separately on Thursday, Bloomberg, referring to unnamed sources, said the leading Chinese business negotiator Liu. At an evening address, he said he was cautious about the first trade agreement with the US. The report added that Liu said the participant was "perplexed" by the US requirements, while still confident that a single-stage agreement could be reached.
Trump and Chinese President Xi Jinping are expected to meet at the edge of the international summit in Chile in mid-November, until it has been lifted as a result of domestic unrest.
The trade tensions between the two largest economies in the world have been celebrated for more than a year, with both countries applying billions of dollars in goods tariffs from the other country.
China would like the US to abolish additional duties in the final trade agreement and Beijing has indicated that the abolition of customs duties is a requirement of the first stage agreement.
Washington would like China, which will intensify its agricultural purchases from US Trump, also questioned the idea that the US would agree to reduce tariffs under the original agreement and even threaten other tariffs for China. If no progress is made in trade negotiations, further US customs duties on Chinese goods are set to enter into force on 15 December.
Zhang Yansheng, a senior researcher at the China Center for International Economic Exchange in Beijing, is optimistic in the US and China will reach a first-stage agreement, with both sides motivated to do so. Trump has to calm the local constituency before the upcoming US elections, while China does not want a trade war, Zhang said in an interview for Mandarin language, according to CNBC translation.
This initial phase of the agreement
also focuses on tariffs rather than on structural issues, which facilitates agreement at this stage.