PBN Capital Logo

China says both sides should make compromises in trade talks

China and the United States last week said they were reviving talks ahead of the meeting between presidents Donald Trump and Xi Jinping. Hopes that it will lead to a de-escalation of a trade war that is damaging the global economy has cheered financial markets.

Talks about reaching a broad deal broke down last month after U.S. officials accused China of backing away from previously agreed commitments.

Speaking at a news briefing on the G20 summit, Chinese Vice Commerce Minister Wang Shouwen, who is also part of the trade negotiating team with the United States, said talks between the two countries' trade teams were underway, though he gave no details.

Both China and the United States should make compromises in trade talks, Wang said on Monday, ahead of a much anticipated meeting between the Chinese and U.S. presidents at this week's G20 summit in Japan.

"Equality and mutual benefit means the consultations have to happen on an equal basis, the agreement to be reached has to be beneficial for both sides, - he added - Meeting each other half way means both sides have to compromise and make concessions, not just one side."

Wang declined to answer a question about what specific compromises Xi may offer to win a trade deal with Trump.

Trump has threatened to put tariffs on another $325 billion of goods, covering nearly all the remaining Chinese imports into the U.S. China has vowed to not give in on issues of principle nor under U.S. pressure.