The Trump administration has reached out to China for a new round of trade talks as it prepares to activate punitive USA tariffs on $200 billion worth of Chinese goods, two people familiar with the matter said Wednesday.
Christopher McNally, an adjunct senior fellow at the East-West Centre in Hawaii, said the Trump administration may seek a deal on the trade war before the elections, though he cautioned that the USA president could easily throw out any negotiated settlement if he felt it did not "help him politically or doesn't go far enough, doesn't make him look good enough". "If we meet, we meet?" he wrote.
The White House believes China will wave the white flag after the next round of tariffs on $200 billion in goods, said William Zarit, the chamber's chairman.
"We support President Trump's efforts to reset US-China trade relations, address long-standing inequities and level the playing field", Zheng said.
Two-thirds of American companies that responded to a survey said they have suffered lost sales or lower profits due to that increase, two chambers of commerce reported Thursday. "And so, Secretary Mnuchin, who is the team leader with China, has apparently issued an invitation".
The trade war has already contributed to sell-offs in China's stock markets and currency.More news: Lloris gets driving ban for drink-driving
The United States and China have imposed tariffs on $50-billion of each other's goods since July as trade frictions between the world's two biggest economies worsened, despite several rounds of negotiations.
It resulted, however, in Americans for decades missing out on innovations from European truck makers and paying higher prices for USA pickups and sport utility vehicles, said Mark J. Perry, an economist at the American Enterprise Institute.
Trump said last week he could move "very soon" to impose tariffs on an additional $200bn (£153bn) worth of products with taxes on another $267bn "ready to go on short notice".
One of the highest-profile casualties of the trade war was United States chipmaker Qualcomm's (QCOM) $44 billion acquisition of Dutch rival NXP Semiconductors (NXPI), which China killed in July by refusing to grant it regulatory approval. A meeting among Cabinet-level officials could ease market worries over the escalating tariff war that threatens to engulf all trade between the world's two largest economies and raise costs for companies and consumers. The business lobby urged Washington to reconsider its approach.
"There's some discussions and information that we received that the Chinese government - the top of the Chinese government wished to pursue talks", Kudlow told Fox Business Network on Wednesday.
But Kudlow was non-committal over the chances of a breakthrough, adding: "I guarantee nothing".More news: U.S. Identifies Bodies of Two Veterans Returned by North Korea
"Chinese officials said they have grown wary of the Trump administration's unpredictable decision-making process and may be hesitant to accept without a clear sign USA negotiators have authority to speak for the president", the original report said.
China has threatened retaliation, which could include action against USA companies operating there.
That shows "neither side is 'winning, '" because "both are equally prone to losing companies", the chamber said.
On Thursday, the US business lobbies AmCham China and AmCham Shanghai published a joint survey showing that the negative impact on USA companies in China of tit-for-tat tariffs Washington and Beijing have imposed on one another was "clear and far reaching".
The tweet appeared aimed at a Wall Street Journal report about Mr. Mnuchin's invitation.
US business groups are escalating their fight against Trump's tariffs, with over 60 industry groups launching a coalition to put political pressure on the Trump administration to seek alternatives to tariffs.More news: Apple September 12 event wrap-up: new iPhones, Apple Watch, and more
They are already affecting companies, particularly the automobile industry, and hurting economies.