Ahead of a possible meeting next month between US President Donald Trump and his Chinese counterpart, Xi Jinping, the White House tempered any optimism that a trade truce with Beijing is imminent when top economic advisor Larry Kudlow accused China on Sunday of doing “nothing” to defuse trade tensions.
But some Chinese officials and government advisers recently emphasized that China will show patience in addressing American trade demands, postponing if necessary some of its plans to become self-sufficient in high-tech industry.
China’s “Made in China 2025” plan, which envisions a rapid expansion of domestic high tech industry, figures prominently in the US administration’s complaints about Chinese economic policy. US negotiators accuse China of using state subsidies to gain an unfair advantage against US competitors, quite apart from tariffs, non-trade barriers, theft of intellectual property and pressure on Western joint-venture partners to transfer technology.
China told the United States that it would buy whatever the United States wanted to sell in order to reduce the trade deficit, and is ready to work with Washington on improving intellectual property protection, but the American challenge to China’s economic model is a deal-breaker.
By backing off from the 2025 target, Chinese officials believe, Beijing can placate the US Administration, and give President Trump a coup in public relations while keeping its own industrial program intact. The government is exploring a number of ways to present such a deal.