Beijing:'can't Guarantee To End Trade Tension'

Beijing said on Monday that it cannot guarantee that renewed trade tension with Washington can be avoided after US Treasury Secretary Steven Mnuchin declared a temporary truce in a spiralling dispute that prompted worries of a chilling of global commerce.

Mnuchin said on Sunday the two sides were "putting the trade war on hold" following an announcement China would "significantly increase" purchases of American farm goods, energy and other products and services. But the two sides gave no indication of how much progress they had made toward ending the dispute over US complaints about market access and technology policy.

Mnuchin's comments showed both sides hope to avoid a "trade war," said a Chinese foreign ministry spokesman, Lu Kang. However, he added, "Given the increasing interaction between the two countries, we cannot assure you they will not encounter more frictions or disputes in the future."

US President Donald Trump has threatened to raise import duties on Chinese goods worth up to US$150 billion in response to complaints Beijing steals or pressures foreign companies to hand over technology in exchange for market access. Chinese leaders issued their own US$50 billion list of US goods for possible retaliation.

The strains in the world's biggest trading relationship prompted fears other governments might respond by raising import barriers, chilling global commerce and economic growth.

Trump is pushing for Beijing to discard or scale back ambitious technology and industrial development plans Washington complains will hamper market access and hurt foreign competitors. Businesspeople and economists say Communist leaders who see their development model as a success are unlikely to agree to more than minor changes.

In a statement Saturday, the two countries made no mention of those underlying American complaints. Mnuchin said talks made "meaningful progress," but they gave no indication of how close they might be to an overall settlement. (AP)