Exclusive: U.S. pushing for regular review of China trade, reform progress

Reuters ^ | January 18, 2019 / 12:30 PM / Updated 2 hours ago | Michael Martina, Chris Prentice

[Zhang Fei]

BEIJING/WASHINGTON (Reuters) - The United States is pushing for regular reviews of China’s progress on pledged trade reforms as a condition for a trade deal - and could again resort to tariffs if it deems Beijing has violated the agreement, according to sources briefed on negotiations to end the trade war between the two nations.

A continuing threat of tariffs hanging over commerce between the world’s two largest economies would mean a deal would not end the risk of investing in businesses or assets that have been impacted by the trade war.

“The threat of tariffs is not going away, even if there is a deal,” said one of three sources briefed on the talks who spoke with Reuters on condition of anonymity.

Chinese negotiators were not keen on the idea of regular compliance checks, the source said, but the U.S. proposal “didn’t derail negotiations.”

A Chinese source said the United States wants “periodic assessments” but it’s not yet clear how often.

“It looks like humiliation,” the source said. “But perhaps the two sides could find a way to save face for the Chinese government.”

[Zhang Fei]

The Chinese source calls it humiliation and wants a way to save face. They're not looking to save face - they're looking to cheat and renege without consequence.

[SharpRightTurn]

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