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Beijing’s central bank head calls for ‘constructive solutions’ to end trade spat
U.S President Donald Trump said on Sunday that China, under pressure due to Washington’s policies, wanted to have a trade deal with him, but he told them a week ago that they were not ready yet.
“I told them a week ago — they want to come in, they want to make a deal — I said, you’re not ready to make a deal,” Mr. Trump told reporters at the White House. “China wants to make a deal. China would love to make a deal. I don’t think they’re ready yet,” he said in response to a question. Over the last six months, the U.S. has imposed additional tariffs on imports of more than $250 billion products. Mr. Trump has threatened to add more. “They’ve made too much money for too long. What they’ve done to our country is take out anywhere from $300 billion to $500 billion a year…I have great respect for China and for President Xi [Jinping] in particular. We’ll probably make a deal, but I don’t think they’re ready, Mr. Trump said. Meanwhile, China’s central bank Governor on Sunday sought to cool the temperature on the brewing trade-and-currency war with Washington, calling for “constructive solutions” as the spat threatens to knock the world economy.
‘Lose-lose situation’
Speaking on the last day of the IMF-World Bank annual meetings in Bali, Yi Gang warned that the stakes could hardly be higher and cautioned that a clash between the world’s two biggest economies was a “lose-lose” situation. “Trade tensions…cause negative expectations, negative uncertainties,” the People’s Bank of China head told a seminar with other top central bankers.
“There are tremendous uncertainties ahead of us.
“The whole world should work together to seek constructive solutions,” he added. Mr. Yi said he had spoken to central bank Governors and other top officials from a string of nations, amid a tit-for-tat U.S.-China tariff battle and Washington’s accusations that China was unfairly pushing down the value of its yuan currency to boost exports. China’s top central banker vowed that Beijing would do its part by getting tougher on domestic copyright violators and opening up the financial services sector. His comments come a day after the IMF warned that the “window of opportunity” to keep global growth on track was narrowing as the U.S.-China spat threatens to boil over and emerging markets feel the pinch from higher U.S. interest rates. U.S. Treasury Secretary Steven Mnuchin had earlier downplayed the global concerns expressed at the meetings, saying the world would benefit if Beijing is forced to changes its trade policies.
Source : https://www.thehindu.com/todays-paper/tp-international/china-not-ready-for-a-deal-trump/article25222754.ece
