There haven’t been intensive discussions around avoiding China tariffs – report

The WSJ’s Lingling Wei reports that there haven’t been ‘intensive’ negotiations on how China can avoid further US tariffs after the first 10% increase and there isn’t likely to be more on the second threat.

So far, Beijing hasn’t made an offer to the Trump administration that can show a stepped-up commitment to reducing China’s exports of chemicals used to make fentanyl. That was a reason why no direct conversation had yet taken place between Trump and Xi. Unlike Canadian and Mexican leaders, Xi has shown little interest in focusing solely on a deal about fentanyl, the people said. Rather, he aims to negotiate a broader agreement with Trump that could define the tone of bilateral relations

It’s tough to imagine that any of these negotiations are really about fentanyl given Trump’s longstanding complaints about trade.

Earlier this month, the WSJ reported that Beijing was trying to put together a new ‘phase one’ proposal, similar to the one from Trump’s first term.

“For now, Beijing thinks it can handle the 10% additional tariffs,” the WSJ reports.

This article was written by Adam Button at www.forexlive.com.