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Donald Trump: China 'Under Pressure' to Make a Deal with United States

14 September 2018

A survey from AmCham China and AmCham Shanghai found that almost two-thirds of more than 430 USA firms in China say the tariffs Trump placed on billions of dollars of Chinese goods this summer have hurt their businesses.

"We are under no pressure to make a deal with China, they are under pressure to make a deal with us", Mr Trump said in a tweet on Thursday.

USA companies in China say they are already feeling the pain from the trade war. The White House has accused China of forcing USA companies to partner with local firms and then stealing their intellectual property, among other grievances.

Orit Frenkel, a former US Trade Representative official and president of consulting firm Frenkel Strategies, also said Trump may feel pressure to reach agreements to avoid continuing the trade war with the midterms fast approaching, but that he would want to see significant concessions from China before backing down.

China welcomed the offer of talks and said the two countries were discussing the details, according to reports. Treasury Secretary Steven Mnuchin has extended an invitation to talks to his counterparts in Beijing.

China's stock market slumped to a 31 month low on Wednesday, Sept. 12.

In a survey by two American chambers of commerce in China, almost two-thirds of United States firms who responded said the waves of new tariffs have harmed their business.

"The U.S. administration runs the risk of a downward spiral of attack and counterattack, benefiting no one", William Zarit said in the statement.

The possible resumption of negotiations sent Asian markets rallying with Hong Kong surging 2.5 per cent - having fallen for six straight days and into a bear market - and Shanghai more than one per cent higher.

About 74.3 percent said they would be affected if Washington's tariff increase on $200 billion of Chinese goods goes ahead.

Businesses are ratcheting up lobbying against tariffs that the Trump administration has imposed, or is considering.

"We share the concerns of the United States regarding China's trade and investment practices, but continuing along the path of tariff escalation is extremely unsafe", warned Harborn.

"I think most of us think it's better to talk than not to talk, and I think the Chinese government is willing to talk", Kudlow said.

More than 60% of USA companies polled said the US tariffs were already affecting their business operations, while a similar percentage said Chinese duties on USA goods were having an impact on business.

But he cautioned: "I guarantee nothing". Mid-level US and Chinese officials held inconclusive talks on Aug 22 and 23. A meeting among Cabinet-level officials could ease market worries over the escalating tariff war that threatens to engulf all trade between the world's two largest economies and raise costs for companies and consumers.

"This survey affirms our concerns: tariffs are already negatively impacting USA companies and the imposition of a proposed $200-billion tranche will bring a lot more pain", said Eric Zheng, chairman of AmCham Shanghai.

"We have indeed received an invitation from the USA side".

USA business groups are escalating their fight against Trump's tariffs, with over 60 industry groups launching a coalition to put political pressure on the Trump administration to seek alternatives to tariffs.

Such a meeting could take place in Washington or Beijing, though the timing is unclear, according to informed sources.

The invitation was first reported by the Wall Street Journal. -China Business Council, said this week Chinese officials told it they were postponing accepting license applications from American companies in financial services and other fields until relations improve.

Donald Trump: China 'Under Pressure' to Make a Deal with United States