As reported by Bloomberg citing key sources, the Chinese government has allegedly outlined potential concessions that could be made ahead of the US-China sideline meeting slated for the upcoming G20 summit.
Key quotes
“Chinese officials have outlined a series of potential concessions to the Trump administration for the first time since the summer as they continue to try to resolve a trade war between the world’s two largest economies, according to three people familiar with the discussions.
The commitments for now fall short of the type of major structural reforms that President Donald Trump has been demanding, two of the people said, cautioning that a long road lies ahead in negotiations. One person said that talks are continuing and constructive.
Most of the document appeared to be a rehash of previous changes already made by Beijing, such as raising equity caps on foreign investment in certain industries, according to one person. It did not contain the sort of commitment to change industrial policies such as Xi’s “Made in China 2025″ that Washington has been seeking, according to one person familiar with the discussions.
“Mnuchin and Kudlow cannot create a trade deal. They are not capable of it,” said Derek Scissors, a China expert at the conservative American Enterprise Institute, who pointed to the two men’s lack of experience in difficult trade negotiations. “Until I see Lighthizer ordered into the fray I don’t think there will be a trade deal.” “
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