Source: Taiwan Economic Daily
As the US -China trade consultation entered the final stage, people familiar with the matter revealed that the United States representatives originally required China to significantly reduce the subsidy industry. However, after Beijing strongly resisted, the United States has softened.China is also considering the US proposal to cancel punitive tariffs on major agricultural products and tariffs on other products, so as to facilitate US President Trump to claim to benefit from American farmers before the 2020 election.
Reuters reported that the representatives of the United States negotiating originally used China to significantly reduce subsidies for domestic industries and as one of the conditions for reaching a trade agreement. However, in order to promote the US -China agreement next month, the United States no longer seeks China to reduce industrial subsidies according to the expectations of the United States, and instead, it will change.Focusing on the topic issues that the United States believes that China is more likely to reach, including stopping forced technology transfer, strengthening the protection of smart property rights, and relaxation of the Chinese market access.China has made concessions on these issues.
A person familiar with the negotiations said that when he talked about the issue of industrial subsidy, he said that he would not just mention it, but he would not be detailed or specific.Another person said that if the representative of the US negotiations defined is a way to change China's economic operation, it will never happen.
Bloomberg Information also reported that sources revealed that China is considering the US proposal to turn the punitive tariffs on major agricultural products to other products, which will represent China list of US $ 50 billion in US commodities.Among them, it may no longer include major agricultural products, but to non -agricultural products, which will also make it easier for China to meet the previous proposal and increase the annual imports of US agricultural products to 30 billion US dollars before the trade war.
However, people familiar with the matter did not disclose whether China has shifted the target to which products will be shifted to the US agricultural products.
These developments show that the US -China consultation is considering political factors into consideration. If they can take a step back, it will help the leaders of both parties.
The problem of industrial subsidies is very difficult because the subsidy policy is inseparable from the Chinese government's industrial policies.The Chinese government provides subsidies and rental discounts on state -owned enterprises and areas with the importance of long -term development strategy, and strengthens the role of the country in economics.
