<![CDATA[China's Vice-Premier Liu He, US Trade Representative Robert Lighthizer start 'endgame' round of trade talks in Washington]>
China and the United States started a fresh round of talks on Wednesday in Washington amid upbeat hopes of finalising a comprehensive agreement to end their protracted trade war.
Chinese Vice-Premier Liu He was greeted by US Trade Representative Robert Lighthizer outside the USTR office on Wednesday morning, shaking hands. In a rare display of enthusiasm, Liu waved to the reporters before entering the USTR office.
The talks are the latest after both sides resumed negotiations four months ago and follow two days of talks last week when Liu hosted Lighthizer and US Treasury Secretary Steven Mnuchin in Beijing.
Myron Brilliant, executive vice-president for international affairs at the US Chamber of Commerce, said that negotiations had now entered the "endgame stage".
On Tuesday, Brilliant called the talks this week "a very critical window".
Robert Lighthizer, US trade representative (left), waits to greet Liu He on Wednesday. Photo: Bloomberg
"Ninety per cent of the deal is done, but the last 10 per cent is the hardest part to get there. It's the trickiest part and it will require trade-offs on both sides," he said.
"Both sides have been pretty clear that they would like to wrap things up in April. Whether they can get here is going to be determined on the basis of whether they can handle these outstanding tricky issues," he added.
Brilliant said two "particularly sensitive areas" that have stood in the way is an enforcement mechanism that can hold China responsible for implementation of reforms it agrees to in the deal as well as the removal of US tariffs.
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One source said that China had made further concessions during this round of talks, including greater opening of its markets, and that it is pushing for a summit between Chinese President Xi Jinping and US President Donald Trump to sign the deal late this month. Another possible option is for the two leaders to meet in June at the G20 summit in Japan.
Larry Kudlow, director of the White House's National Economic Council, said on Tuesday that negotiators were making progress, but "we are not there and we hope this week to get closer".
If Beijing does not live up to the promises it makes in the trade agreement, the US wants a unilateral right to retaliate without China taking corresponding actions. But Beijing has refrained from giving up its sovereignty and insisted that any mechanism should be enforced on both sides.
Yi Gang, governor of the People's Bank of China, arrives Wednesday at the office of the US Trade Representative in Washington. Photo: Andrew Harrer/Bloomberg
The other issue is how much of the US tariffs " currently imposed on US$250 billion worth of Chinese goods, if any, will be eliminated, Brilliant said.
"China has been very clear, in public and privately, that they would like to see all the tariffs gone," he said. "The [Trump] administration has been equally clear that they want to keep some of the tariffs in place as a way to have leverage over China to fulfil its obligation under whatever final package is agreed to."
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In a sign of goodwill, China announced on Sunday it would continue suspending the implementation of new tariffs on US automobiles.
China also moved on Monday to tighten curbs on the manufacture of the painkiller fentanyl, a response to repeated requests by the US, which has blamed Chinese imports for fuelling the American opioid crisis that has claimed thousands of lives.
This article originally appeared on the South China Morning Post (SCMP).
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