US asks China to cut trade deficit by $200bn


US Treasury secretary Steven Mnuchin (centre) and US Commerce Secretary Wilbur Ross (second from right) walk through a hotel lobby as they head to Diaoyutai state guest house to meet Chinese officials in Beijing © AFP

A high-level US delegation has asked China to cut the bilateral trade deficit by $200bn by 2020, reduce tariffs, and cut subsidies for emerging industries, according to a document seen by the Financial Times. 

The discussion document demands that China reduce tariffs to levels no higher than those that the US imposes on the same goods. 

The document also calls on China to cut subsidies linked to China’s “Made in 2025” industrial policy plan designed to promote development of advanced industries including electric vehicles and artificial intelligence. 

It further calls for removing investment restrictions affecting US companies operating in China, including shareholding caps. 

The document was sent to Chinese negotiators in advance of bilateral talks in Beijing scheduled to conclude on Friday.

The $200bn demand compares to last year’s $337bn total deficit for goods and services.

Copyright
The Financial Times Limited 2018. All rights reserved.


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US asks China to cut trade deficit by $200bn

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