By Ros Krasny and John McCluskeyChina will significantly increase purchases of United States goods, the White House said as Beijings special envoy at talks in Washington declared a trade war has been averted between the worlds two largest economies.A joint statement released by the White House following the talks didnt place a dollar figure on the increased purchases by China, or address a comment by President Donald Trumps top economic adviser suggesting Beijing had agreed to slash its annual trade surplus with the United States by $200 billion.Vice Premier Liu He, a special envoy of Chinas President Xi Jinping, told reporters in Washington that talks with United States officials, including Treasury Secretary Steven Mnuchin, Secretary of Commerce Wilbur Ross and United States Trade Representative Robert Lighthizer, ended with a pledge not to engage in a trade war, according to a Xinhua news agency report.Liu said the two sides agreed to stop slapping tariffs on each other, Xinhua reported.
Liu said his trip to the United States had been positive, pragmatic, constructive and productive.
Trade cooperation would be enhanced in such areas as energy, agriculture, health care, high-tech products and finance, a win-win choice for both nations.China agreed to meaningful increases in United States agriculture and energy exports, the White House said, adding that the United States will send a team to China to work out the details.Trade DeficitThere was a consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China, the White House said.The delegations also discussed expanding trade in manufactured goods, and each side agreed to strengthen cooperation on intellectual property.
China will advance relevant amendments to its laws and and regulations in that area, including its patent law, the White House said.The White House joint statement didnt mention additional United States demands, including a halt to subsidies and other government support for the Made in China 2025 plan that targets strategic industries from robotics to new-energy vehicles.
China had made its own demands, including giving equal treatment to its investment, and warned United States companies may be excluded from measures to open its economy.On Friday morning, Larry Kudlow, director of the National Economic Council, told reporters that China had offered to reduce its annual trade surplus with the United States by at least $200 billion.The numbers a good number, Kudlow said outside the White House.Conciliatory StanceEarlier, two posts on Chinese state social media disputed a report that China planned to slash its trade surplus by the extent demanded by Washington though increased imports of United States products.
A foreign ministry official also played down the suggestion.In a sign that the Chinese government is seeking a conciliatory stance, it announced on Friday it was ending an anti-dumping and anti-subsidy investigation into imports of United States sorghum, citing public interest.
That move came days after it restarted a review of Qualcomm Inc.s application to acquire NXP Semiconductors NV.A $200 billion reduction in the United States trade gap with China by 2020 was on a list of demands the United States made earlier this month as Mnuchin led a delegation to Beijing.
That mission left with little common ground with China and reports emerging of infighting among the United States officials.
The United States merchandise trade deficit with China hit a record $375 billion last year.Mnuchin and Kudlow will appear on United States political talk shows on Sunday.Trumps administration has threatened to impose tariffs on as much as $150 billion of Chinese imports to the United States as tensions over trade have escalated.
Trump expressed doubt before his meeting with Liu that China and the United States would come to an agreement to avoid a damaging trade war.ZTE SilenceTop Senate Democrat Chuck Schumer criticized a lack of specific measures in the joint statement to protect United States intellectual property and stop China from keeping our best goods until we hand over our trade secrets.Schumer noted that the statement also didnt mention ZTE Corp., the Chinese telecom company that Trump a week ago ordered the United States Commerce Department to get help back into business after too many jobs in China lost because of recent United States action.If the administration capitulates on ZTE and allows it to continue to exist, Schumer said, that will signal to President Xi that we are weak negotiators.Kudlow said Friday that ZTE may need to change its management to win a reprieve from United States sanctions that shut it off from key parts suppliers.