Chiles APEC cancellation raises new hurdle for U.S.-China trade deal – Reuters

By Andrea Shalal and Steve Holland

FILE PHOTO: Chinese and U.S. flags flutter near The Bund, prior to U.S. trade delegation fulfill their Chinese counterparts for talks in Shanghai, China July 30, 2019. REUTERS/Aly Song WASHINGTON (Reuters) -Leaders from the United States and China experienced a new challenge in their struggle to end a harmful trade war on Wednesday, when the summit where they were supposed to satisfy was cancelled due to the fact that of violent protests.

U.S. President Donald Trump said today he wished to sign an interim trade handle Chinese equivalent Xi Jinping throughout the Nov. 16-17 Asia-Pacific Economic Cooperation top in Chile. Chilean authorities said they cancelled the summit to focus on restoring law and order in the nation.

The White House stated later on the United States still anticipates to sign a preliminary trade arrangement with China next month, but no alternate location had actually yet been set for Xi and Trump to satisfy.

“We look forward to settling Phase One of the historic trade deal with China within the same amount of time,” the White House stated in a statement that omitted a mention of the president or his scheduled conference with Xi.

U.S. and Chinese mediators have actually been racing to complete a text of the “phase one” agreement for Trump and Xi to sign next month, a procedure clouded by wrangling over U.S. needs for a timetable of Chinese purchases of U.S. farm products.

Treasury Secretary Steven Mnuchin, who was traveling in the Middle East, informed Reuters on Wednesday that U.S. discussions with China had been efficient, and work on finalizing the text of the deal was continuing.

The White House plans to offer some U.S. places as options for the APEC top, according to one source knowledgeable about U.S. thinking. Alaska and Hawaii might be prospective alternatives that would be acceptable to China, said a 2nd source familiar with the issue.

The White House had no instant remark on alternate places. But trade experts said gathering a replacement summit at short notification would be difficult.

“These summits – particularly one involving 21 leaders – are an enormous undertaking, and moving one with two weeks’ notification is all but impossible,” stated Matthew Goodman, a previous National Security Council authorities and an advisor at the Center for Strategic and International Studies, a Washington think tank.

The White House is “plainly indicating that it really desires the Trump-Xi bilateral to go ahead,” Goodman said. “But it appears most likely that they’ll have trade ministers or ambassadors sign the ‘phase one’ offer and save the leaders’ conference for later.”

China has actually suggested Macau as a possible location, according to one China trade source familiar with the problem.

Michael Hirson, with the Eurasia Group consultancy, stated the last-minute switch could delay the signing of a trade deal rather, but he still saw a 70% possibility of an offer by year-end.

“Both leaders have incentives to keep talks on track, avoiding more escalation that presents political and economic threats,” he wrote in an expert note.

A crucial date is Dec. 15, when brand-new U.S. tariffs on Chinese imports such as laptops, toys and electronics kick in. Both the United States and China have an interest in reaching a deal and averting those tariffs.

Trump suspended U.S. tariffs that were prepared for Oct. 15 previously this month, after trade talks in Washington. However the White House has not announced any strategies to delay or cancel the Dec. 15 ones.

There is no apparent global meeting in the future where Trump and Xi might satisfy on the sidelines, since Trump is not participating in the East Asian Summit in Thailand next week, one diplomat said.

Trump has actually revealed interest in going to Australia for the Presidents Cup golf competition that starts Dec. 9, which would put him in the region.

Reporting by Andrea Shalal, Steve Holland and David Brunnstrom; modifying by Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.

U.S. President Donald Trump said this week he hoped to sign an interim trade deal with Chinese equivalent Xi Jinping throughout the Nov. 16-17 Asia-Pacific Economic Cooperation summit in Chile. The White House intends to offer some U.S. locations as alternatives for the APEC summit, according to one source familiar with U.S. thinking. The White House is “plainly signaling that it really desires the Trump-Xi bilateral to go ahead,” Goodman said. An important date is Dec. 15, when new U.S. tariffs on Chinese imports such as electronic devices, laptops and toys kick in. Trump suspended U.S. tariffs that were planned for Oct. 15 earlier this month, after trade talks in Washington.

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