BEIJING (AP) — China confirmed Tuesday its economy czar will go to Washington for trade talks despite fears he might cancel after President Donald Trump threatened to escalate a tariff war over Beijing’s technology ambitions.
The announcement suggests President Xi Jinping’s government is putting its desire to end a conflict that has battered Chinese exporters ahead of the political need to look tough in the face of U.S. pressure.
The decision to have Vice Premier Liu He, Xi’s top economic adviser, take part in talks due to start Thursday might keep alive hopes the two biggest global economies could make peace as early as this week.
The Trump administration is pressing Beijing to roll back plans for government-led development of Chinese global competitors in robotics, electric cars and other technologies. Washington, Europe, Japan and other trading partners say those violate China’s market-opening commitments and are based in part on stolen technology.
Trump’s announcement Sunday that he would increase tariffs on $200 billion of Chinese imports to 25% from 10% caused global stock markets to plunge. Markets steadied after a Chinese spokesman said Monday that envoys still were preparing to go to the United States, though there was no word then whether Liu would take part.
On Tuesday, China’s main stock market index rose 0.7% and most other Asian markets also rebounded.
The American side is led by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
A Commerce Ministry statement announcing Liu’s plans gave no indication whether other details such as the size of his delegation might change.
Washington and Beijing have raised tariffs on billions of dollars of each other’s exports, disrupting trade in goods from soybeans to medical equipment. Estimates of lost potential sales so far range as high as $25 billion.
Both governments have said negotiations were making progress, but Trump expressed frustration Sunday at the pace.
Mnuchin said Monday that Chinese officials “were trying to go back on some of the language” that had been negotiated in 10 earlier rounds of talks.
In response, a foreign ministry spokesman, Geng Shuang, said Beijing “is sincere in continuing consultations.”
