US, China putting trade war on hold after progress in talks

News

US, China putting trade war on hold after progress in talks

2018-05-21 14:40 Last Updated At：17:40

The United States and China are pulling back from the brink of a trade war after the world's two biggest economies reported progress in talks aimed at bringing down America's massive trade deficit with Beijing.

"We are putting the trade war on hold," Treasury Secretary Steven Mnuchin said Sunday.

After high-level talks Thursday and Friday in Washington, Beijing agreed in a joint statement with the U.S. to "substantially reduce" America's trade deficit with China, but did not commit to cut the gap by any specific amount. The Trump administration had sought to slash the deficit by $200 billion.

Still, Mnuchin said the two countries had made "meaningful progress" and that the administration has agreed to put on hold proposed tariffs on up to $150 billion in Chinese products. China had promised to retaliate in a move that threatened a tit for tat trade war.

He said they expect to see a big increase — 35 percent to 45 percent this year alone — in U.S. farm sales to China. Mnuchin also forecast a doubling in sales of U.S. energy products to the Chinese market, increasing energy exports by $50 billion to $60 billion in the next three years to five years.

Commerce Secretary Wilbur Ross, who has been part of the U.S. negotiating team, will go to China soon to follow up on last week's discussions, Mnuchin said.

In Saturday's statement, Beijing committed to "significantly increase" its purchases of American goods and services, saying the increase would "meet the growing consumption needs of the Chinese people and the need for high-quality economic development."

Last year, the U.S. had a record $376 billion deficit with China in the trade of goods; that was the largest by far with any nation.

Trade analysts were not surprised that China refused to agree to a numerical target for cutting the trade gap, but they said the talks probably were more successful in easing trade tensions.

"The Trump administration seems eager to engineer at minimum a temporary peace with China to ensure a smooth run-up to the Kim-Trump summit in June," Cornell University economist Eswar Prasad said, referring to the June 12 meeting scheduled between President Donald Trump and North Korean leader Kim Jong Un.

If there is success in the U.S.-China discussions, analysts suggest it likely would involve the countries' presidents this fall before the November elections.

"Part of the good news for markets: As long as both sides continue to be 'constructively' engaged, imposition of additional tariffs by either side is very unlikely," analysts at investment management firm Evercore ISI said in a research note. "There is no reason for either side — particularly the U.S. — to destroy the process that both sides are building, which is what imposing tariffs would do."

Sen. Lindsey Graham, R-S.C., praised the administration's efforts with China.

"It's smart to engage China on trade abuses, and it would also be smart to get them more involved in trying to help us with North Korea," Graham said.

Trump campaigned in 2016 on a pledge to get tough on China and other U.S. trading partners. He views the U.S. trade deficit with China as evidence that Beijing is engaged in abusive trading practices and has outmaneuvered previous U.S. administrations.

Last August, U.S. Trade Representative Robert Lighthizer began investigating Beijing's strong-arm tactics to challenge U.S. technological dominance. These include outright cybertheft of U.S. companies' trade secrets and China's demands that American corporations hand over technology in exchange for access to the Chinese markets.

Last month, the administration proposed tariffs on $50 billion of Chinese imports to protest the forced technology transfers. Trump later ordered Lighthizer to seek up to an additional $100 billion in Chinese products to tax.

China responded by targeting $50 billion in U.S. products, including soybeans — a shot at Trump supporters in America's heartland. The prospect of an escalating trade war has shaken financial markets and alarmed business leaders.

In a separate controversy, the Commerce Department last month blocked China's ZTE Corp. from importing American components for seven years, accusing the telecommunications company of misleading U.S. regulators after it settled charges last year of violating sanctions against Iran and North Korea.

The ban amounted to a death sentence for ZTE, which relies heavily on U.S. parts, and the company announced that it was halting operations. A week ago, Trump tweeted that he was working with Chinese President Xi Jinping to put ZTE "back in business, fast." Media reports suggested that the U.S. was offering to swap a ZTE rescue for an end to proposed Chinese tariffs on U.S. farm products.

Sen. Mark Warner of Virginia, the top Democrat on the Senate Intelligence Committee, called Trump's intervention in the case "outrageous" and said that using ZTE "as a bargaining chip ... is not in the best interests of our national security."

White House economic adviser Larry Kudlow said there could be "some small changes around the edges" in the sanctions against ZTE. But Kudlow added: "Do not expect ZTE to get off scot-free. It ain't gonna happen."

Mnuchin and Graham appeared on "Fox News Sunday," Warner spoke on CNN's "State of the Union" and Kudlow was interviewed on ABC's "This Week."

As some universities negotiate with pro-Palestinian protesters, others quickly call the police

2024-04-26 20:43 Last Updated At：20:50

The students at Columbia University who inspired pro-Palestinian demonstrations across the country dug in at their encampment for the 10th day Friday as administrators and police at campuses from California to Massachusetts wrestled with how to address protests that have seen scuffles with police and hundreds of arrests.

Officials at Columbia and some other schools have been negotiating with student protesters who have rebuffed police and doubled down. Other schools have quickly turned to law enforcement to douse demonstrations before they can take hold.

As the death toll mounts in the war in Gaza and the humanitarian crisis worsens, protesters at universities across the country are demanding schools cut financial ties to Israel and divest from companies they say are enabling the conflict. Some Jewish students say the protests have veered into antisemitism and made them afraid to set foot on campus, partly prompting the calls for police intervention.

After a tent encampment popped up Thursday at Indiana University Bloomington, police with shields and batons shoved into protesters and arrested 33. Hours later at the University of Connecticut, police tore down tents and arrested one person.

And at Ohio State University, police clashed with protesters just hours after they gathered Thursday evening. Those who refused to leave after warnings were arrested and charged with criminal trespass, said university spokesperson Benjamin Johnson, citing rules barring overnight events.

The clock is ticking as May commencement ceremonies near, putting added pressure on schools to clear demonstrations. At Columbia, protesters defiantly erected a tent encampment where many are set to graduate in front of families in just a few weeks.

Columbia officials said that negotiations were showing progress as they neared the school’s deadline of early Friday to reach an agreement on dismantling the encampment. Nevertheless, two police buses were parked nearby and there was a noticeable presence of private security and police at entrances to the campus.

“We have our demands; they have theirs,” said Ben Chang, a spokesperson for Columbia University, adding that if the talks fail the university will have to consider other options.

Just past midnight, a group of some three dozen pro-Palestinian protesters handed out signs and started chanting outside of the locked Columbia University gates. They then marched away as at least 40 police officers assembled nearby.

California State Polytechnic University, Humboldt, has been negotiating with students who have been barricaded inside a campus building since Monday, rebuffing an attempt by the police to clear them out. Faculty members met with protesters Thursday to try to negotiate a solution as the campus remains shut down at least through the weekend.

A dean at the school, Jeff Crane, suggested during the meeting that the university form a committee that would include students to do a deep dive into the school's investments. Crane also suggested faculty and students continue meeting every 24 hours to keep an open line of communication. The sides have yet to announce an agreement.

The school's senate of faculty and staff demanded the university's president resign in a vote of no confidence Thursday, citing the decision to call police in to remove the barricaded students Monday.

On the other end of the state, the University of Southern California canceled of the school's May 10 graduation ceremony. The announcement was made a day after more than 90 protesters were arrested on campus. The university said it will still host dozens of commencement events, including all the traditional individual school commencement ceremonies.

Tensions were already high after USC canceled a planned commencement speech by the school’s pro-Palestinian valedictorian, citing safety concerns.

At the City College of New York on Thursday, hundreds of students who were gathered on the lawn beneath the Harlem campus’ famed gothic buildings erupted in cheers after a small contingent of police officers retreated from the scene. In one corner of the quad, a “security training” was held among students.

Elsewhere in the city, around a dozen protesters spent the night in tents and sleeping bags inside a building at the Fashion Institute of Technology. The institute's museum, which is located in the building where the demonstrators set up camp, was closed Friday.

Protesters also stayed overnight at the encampment at George Washington University, according to local news stations. In a statement after the Thursday evening deadline to disperse, the university in Washington said the encampment violated university policies and that the administration and police were figuring out how to address the situation.

At Emerson College in Boston, 108 people were arrested at an encampment by early Thursday. Video shows police first warning students in an alleyway to leave. Students linked arms to resist officers, who moved forcefully through the crowd and threw some protesters to the ground.

“As the night progressed, it got tenser and tenser. There were just more cops on all sides. It felt like we were being slowly pushed in and crushed,” said Ocean Muir, a sophomore.

Muir said police lifted her by her arms and legs and carried her away. Along with other students, Muir was charged Thursday with trespassing and disorderly conduct.

Boston police said four officers suffered injuries that were not life-threatening during the confrontation.

The University of Texas at Austin campus was much calmer Thursday after 57 people were jailed and charged with criminal trespass a day earlier, when state troopers in riot gear and on horseback bulldozed into protesters. University officials pulled back barricades and allowed demonstrators onto the main square beneath the school’s iconic clock tower.

At Emory University in Atlanta, local and state police swept in to dismantle a camp. Some officers carried semiautomatic weapons, and video shows officers using a stun gun on one protester they had pinned to the ground. The university said late Thursday that objects were thrown at officers and they deployed “chemical irritants” as a crowd control measure.

Jail records showed 22 people arrested by Emory police were charged with disorderly conduct. Emory said it had been notified that 28 people were arrested, including 20 members of the university community, and some were released.

Since the Israel-Hamas war began, the U.S. Education Department has launched civil rights investigations into dozens of universities and schools in response to complaints of antisemitism or Islamophobia. Among those under investigation are many colleges facing protests, including Harvard and Columbia.

Perry reported from Meredith, New Hampshire. Contributing to this report were Associated Press journalists in various locations including Aaron Morrison, Stefanie Dazio, Kathy McCormack, Jim Vertuno, Acacia Coronado, Sudhin Thanawala, Jeff Amy, Mike Stewart, Collin Binkley, Carolyn Thompson, Jake Offenhartz and Sophia Tareen.