With just about one month to go before the
U.S.-China trade truce comes to an end, some in the American business community
have expressed concerns that many questions remain on whether the two countries
can make enough progress before the early-March deadline lapses.
Those doubts linger despite U.S. Treasury Secretary Steven
Mnuchin expressing optimism that "significant progress" can be
achieved during this week's high-level trade negotiations in Washington.
"I have a sense that on both sides, there is a
determination to get a deal done. But the question is: What is the deal?"
Myron Brilliant, U.S. Chamber of Commerce's executive vice president and head
of international affairs, told CNBC's "Squawk Box" on Thursday.
The U.S. and China — the world's largest economies — engaged in
a bitter tariff fight last year over a number of issues including the their
bilateral trade imbalance, alleged intellectual property theft by Chinese firms
and Beijing's industrial subsidies that put American firms at a disadvantage.
China has repeatedly denied those charges.
That dispute was put on hold for 90 days starting Dec. 1
after U.S. President Donald Trump and Chinese President Xi Jinping met and
agreed to halt additional tariffs as both sides ironed out their trade
differences.
For the American business community, there have been little
signs that thorny issues affecting them have been addressed.
"We hear rumblings or rumors there are some offers (by the
Chinese delegation to Washington) around IP (intellectual property)
enforcement, around the other sensitive issues. However, we're not yet hearing
progress in areas that are important for business as well as to the
administration," said Brilliant.
He added that he would like to see progress on issues such as
industrial subsidies and forced transfer of technology.
'Still a very long
way'
Brilliant is not the only one who has raised doubts over the
progress in the U.S.-China trade talks. Reuters reported that groups, such as
the U.S.-China Business Council, were not expecting any breakthrough from this week's
negotiations.
Any meaningful progress on trade between the two countries is
"still a very long way" away, said Steve Okun, senior advisor at
consulting firm McLarty Associates.
"For the trade talks this week, nothing significant is
going to happen," Okun, a trade expert and a board member of the American
Chamber of Commerce in Singapore, told CNBC's "Capital Connection" on
Thursday.
"We're not going to know if those structural changes are
going to take place (in China) ... that can't happen by March 1 but because the
atmospheric around these trade talks are likely to be very positive, especially
when President Trump meets (China's) Liu He, the markets are going to take that
as a sign that progress has been made. But there is still a very long way to
go," he added.
Trump and Liu — China's vice premier and Xi's top economic
advisor — are expected to meet while the Chinese delegation is in Washington.
Source: CNBC