China: Blaming Xi for United States trade war is ‘shocking’

Lloyd Doyle
July 19, 2018

A senior economic adviser to President Donald Trump on Wednesday said Chinese President Xi Jinping was blocking an agreement to resolve the trade dispute with the United States.

"As far as we know, President Xi at the moment does not wish to make a deal", White House National Economic Council Director Larry Kudlow said at the CNBC Institutional Investor Delivering Alpha conference in NY on Wednesday.

With the President's intent focus on the performance of the stock market under his tenure, you can bet that as long as this trend continues, there will be no urgency on the part of the U.S. to make much in the way of concessions, especially after relaxing restrictions on the ZTE ban and seemingly getting nothing in return.

Earlier this month, the White House slapped 25 percent in tariffs on Chinese goods worth $34 billion - and Beijing immediately hit back with duties on USA goods valued at $34 billion.

European Commission President Jean-Claude Juncker is due to meet with Trump in Washington July 25 and "I'm told he's bringing a very important free trade offer ... that could lower barriers", Kudlow said.

Trump authorised the tariffs after an investigation he ordered by the US Trade Representative's office found that China was violating intellectual property rules and forcing American companies operating in China to hand over their technology secrets to gain access to the market.

Kudlow noted the gap between USA and Chinese tariffs, telling Cramer that "our average tariff is about" 2.5 percent, while "China's average tariff is about 14 percent".

"President Trump inherited this mess", Kudlow said.

"I think he needs to move". "We are waiting for him (Xi)".

The US has threatened to hit another $200 billion worth of Chinese imports with tariffs because of China's retaliation to the previous round of tariffs.

China has retaliated in kind, as have other trading partners impacted by the metals tariffs.

China could end USA tariffs "this afternoon by providing a more satisfactory approach" and taking steps that other countries are also calling for, he said. China has asserted that it will not consider changing policies aimed at developing high-tech industries as part of trade negotiations.

But big differences remain over trade, he said. Kudlow said, however, that he could not provide further details.

Other reports by Iphone Fresh

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