Beijing and US are set to discuss economic and trade relations: Reports

Trade Talks:  Chinese Commerce Minister Wang Wentao and his US counterpart are likely to have a call soon to discuss key economic and trade concerns, according to a report from China's state-run Xinhua news agency. The talks will center on bilateral economic ties as well as mutual concerns, including restrictions recently imposed on electric vehicles.

Worries over Tariffs and Bans

Chinese officials have shown serious concern over more US tariffs, investment restrictions, and sanctions over Russia when they met for two days in Beijing recently under the banner of a working group.

The new batch of tariffs on imported US goods worth $18 billion including EVs, EV batteries, and solar panels has been effective since late September. Lithium-ion batteries are one among those that face the worst of these tariffs.

This manoeuvre is described by the Biden administration as a protection of strategic domestic industries from what it defines as China's excess production capacity. In response to such a move, Beijing has also threatened to retaliate.

China's Position on Competition in Economics

China has for years branded the US  as having its best intention of strangling the economy as well as technological reforms. However, Beijing says it remains willing to talk, especially with the likelihood of Donald Trump becoming the president again. Trump has indicated that he may impose tariffs of above 60 per cent on Chinese imports if he is re-elected in November.

Opportunities for Cooperation

On the eve of China's National Day, Xie Feng, China's ambassador to the U.S., spoke at a reception about the critical nature of US-China relations. "In state-to-state relations, the No.1 and overarching question is: are we rivals, or partners?" he said. He highlighted that "China's success does not have to mean a failure of the United States.”

Strained Relations with the EU

China's economic relationship with the European Union is also under strain, with Brussels accusing Beijing of unfairly flooding the market with EVs supported by Chinese subsidies. The EU is scheduled to vote on imposing definitive tariffs on Chinese-made EVs later this month, which would indicate further strain in international trade relations.