INSUBCONTINENT EXCLUSIVE:
Image copyrightAFP/GettyImage caption
US President Donald Trump says he has a good relationship with President Xi
Jinping
China has reportedly proposed cutting tariffs on US-made cars to 15%, the same tax levied on car imports from other
countries.Bloomberg reported that China's cabinet will review the plans, which would undo the 40% import duty China imposed on US cars this
summer.The proposal, the timing of which remains uncertain, comes as the two countries restart trade talks
President Donald Trump said earlier this month China would cut the tariffs.However the claim has not yet been confirmed by Chinese
officials, sowing confusion.Tuesday's reports in US media, which were based on anonymous sources including a car industry executive, said
China outlined the plan on a recent telephone call between top trade negotiators from the two countries.Bloomberg, which cited "people
familiar with the matter", said the step was not finalised and could still change
The office of the US Trade Representative, which is leading the discussions, did not respond to a TheIndianSubcontinent request for comment
In a tweet, Mr Trump said the two sides were having "very productive conversations".China's commerce ministry confirmed that the two sides
In a statement it said the conversation concerned "pushing forward the timetable and road map for the next stage of economic and trade
consultations work."Shares in car companies, including BMW, rose on the reports.Image copyrightReutersImage caption
Tesla, a US electric car-maker, has said its sales have been hurt by Chinese tariffs
Argentina meetingThe back-and-forth is
the latest in a trade tow triggered by US claims that China engages in "unfair" trade practices, such as theft of intellectual property.The
dispute has prompted the US and China to impose new tariffs on billions of dollars worth of annual trade this year, measures that have
contributed to economic worries in both countries.The two sides, led by Mr Trump and President Xi Jinping, recently met in Argentina, where
they agreed to a 90-day halt to any new tariffs
Image copyrightReutersImage caption
Mr Trump (front right) met Mr Xi (front left) after the G20 summit in Buenos Aires
US officials later said they wanted to see China move to reduce the car tariffs "immediately" as a sign that negotiations
would proceed in good faith
Analysts remain sceptical that the two sides will be able to reach a resolution of the underlying issues by 1 March
Those doubts increased after the recent arrest of a high-ranking Huawei official in Canada at the request of the US, which worsened
relations between the two countries.Deja vuWhite House officials have maintained that the two matters are separate, but apparent agreements
have faltered before.In May, after talks in Washington, the US agreed to hold off on tariff threats, while China said it would reduce the
import duty on foreign cars from 25% to 15%.However that deal fell apart within weeks, after Mr Trump decided to move ahead with tariffs.In
retaliation, China raised the duty on US car imports to 40%, though it proceeded with the lower rate on imports from other countries.
