U.S., China Continue Trade Talks in Beijing
Get exclusive insider access to Milan style and design with WSJ magazine and into Garay make private visits to galleries top restaurants and shops late coamo and much more book this once in a lifetime trip at Indy. Gory dot com slash WSJ magazine or call six four six seven eight zero eight three eight three. With what's news from the Wall Street Journal. I'm Anne Marie for totally in New York. President Trump said Tuesday that he might consider letting a March first deadline for a trade deal between the US and China slide if the two are close to an agreement will have an update on this week's negotiations with Wall Street Journal reporter, Josh soon Brune in just a moment. But first here are some other top stories, we're following President Trump also signalled on Tuesday that he might not support a border security deal. Lawmakers announced late Monday study. I'm not happy about it. It's not doing the trick. But I'm adding things to it. The president also said he thinks another government shutdown is unlikely, but added that Democrats would be at fault. If it happened the tentative deal calls for more than one point three billion dollars in funding for a border wall less than the president's five point seven billion dollar request still the president insisted Tuesday that the wall would be built for the latest head to wsJcom or the w s j app. A US. Jury has convicted notorious Mexican drug Lord, Joaquin El Chapo Guzman of ten criminal counts, including smuggling illegal drugs into the US and conspiring to murder dozens of people considered enemies of the scene at drug cartel. Richard Donahue, US attorney for the eastern district of New York called it a day of reckoning conviction victory for the American people who has suffered so long and so much while Gu's made billions pouring poison over our southern border. This conviction is a victory. The Mexican people who've lost more than one hundred thousand lives in drug related violence. This conviction is a victory for every family. Who's lost a loved one to the black hole of addiction? Authorities had pursued goose Mon who escaped from maximum security prisons twice for more than two decades. Guzman was extra. Lighted from Mexico to the US in two thousand seventeen. The jury reached a verdict on the sixth day of deliberations after a three month trial, the US promised Mexico, it wouldn't seek the death penalty goes mon- could face life in prison when he sentenced apple is losing ground in the world's biggest smartphone market. The international data Corp reports apple smartphone shipments to China in the last three months of two thousand eighteen were down twenty percent as compared to the same period in the previous year shipments from rival hallway on the other hand were up. Twenty three percent last month. Apple CEO, Tim cook pointed to an economic slowdown in China for declining iphone sales in the country. Consumers are also showing less willingness to upgrade and are holding onto older smartphone models longer still to come the latest on trade talks between the US and China. The latest round of trade talks between the US and China are taking place in Beijing this week. So are the two sides any closer to reaching an agreement. Joining us now from Washington with the latest details is Wall Street Journal. Reporter Josh Lewin, Brune, Josh the US and China are toward the end of a ninety day truce they made late last year. Have they made any progress in negotiations since then? Yes. So the truth is started the very beginning of December. I think you can say that they have made some progress. I mean, they're they're they're talking this week. It's up very high level US delegation. It's going the Treasury Secretary the US trade Representative or both going to be there. And they've agreed. You know, China has agreed to talk about a really broad range of issues. You know, initially China was kind of hoping that they could just make an agreement to, you know, buy some more soybeans and buy some more natural gas in that maybe that would be sufficient, and the US is successfully got them to start talking about a much broader range of issues. It's gotten them to talk about the. Way. Chinese companies often require are able to require their American partners to share their technology with them, their proprietary technology. It's a big issue for a lot of US companies. You know, they're having discussions about some issues that China had previously said we're off the limits for national security region reasons, and they've kind of convinced China to discuss those issues as well. So they've certainly made some progress in the past two and a half months, but it's still a big question of whether or not they're going to be able to get close enough to really agree on something in advance of that March first deadline. There have been some mid level talks this week ahead of the talks that will involve Treasury Secretary, Steven Mnuchin and US Trade Representative Robert lighthizer later this week. Are there any details coming out of those mid level talks? That's right. I mean, that's pretty standard before you have the really high level officials getting place and sit down in the room together. You have their staffs come talk about what the issues are. You know, where you might be able to make progress and what? Things you might be able to agree on one of the things I reporters in Beijing have picked up is that China's still they're pretty reluctant to agree to some of the really important stuff that the US wants one of these things is the way that China's supports its own companies, China kind of sees this as a critical way that the communist party there maintains control of the country by supporting certain state owned or state controlled companies giving them an extra boost to make sure they grow. And so, you know, some of these issues that we know are out there are going to be really tough. But that said we also know that they're very serious about both sides are very motivated to to make progress because they really want, you know, President Trump has said kind of a couple of times that he's interested in meeting with president. She at another the Chinese president at another summit. And so in order for them to do that they really have to make progress on some of these issues and by all accounts, they're working sincerely to do it. Josh if they aren't able to reach an agreement tell us about the higher tariffs that would go into effect. Well, back in September the. United states. Put tariffs of ten percent on about two hundred billion dollars of Chinese imports that they're coming into the US each year. So you can think of that as raising about twenty billion dollars. That's about the cost of the tariff at their imposing, and the thing they said at the time was that they were going to raise that tariff to twenty five percent. They were originally going to do that in January. But it's part of this truce they agreed to postpone it until March. So if they do it it would go from ten to twenty five percent. So you can think of that as being like twenty billion dollars in tariff payments jumping all the way up to about fifty billion now in practice. It'll be a little bit different than that. Because rather than companies continuing to import things from China. They might search for suppliers in other parts of the world. So it could be a really big disruption to trade between the two countries. And then the course the flip side of it is that every time the US has imposed tariffs on China. China has responded by imposing tariffs on the United States. So it's been really balanced. It's been a really tit for tat back and forth. And I think we can expect if the US did go. Oh forward with these big tariffs. China would respond with really big tariffs as well. And you know, we've already been seeing economic effects from this. I mean, it's obviously been a concern for the stock market. The stock market has really not liked it when these tariffs have risen. It's started to affect global trade numbers. Pretty obviously, you're seeing the global trade has down. And you're seeing starting to kind of take a toll on economic growth. Global economic growth has been weaker and the US could be in first lowdown this year to it's already slowed a little bit from it's really fast pace early in two thousand eighteen and so there's a lot at stake here if these tests actually go up higher. All right. That's Wall Street Journal reporter, Josh zoom. Maroon joining us from Washington with the latest on trade talks between the US and China. Josh. Thank you so much. Thanks for having me. And that's what's news. I'm Anne Marie for totally in New York for the Wall Street Journal.