Trump says US-China trade deal may be too hard to achieve

Donald Trump Calls For New'Structure For US- China Trade Deal

Donald Trump Calls For New'Structure For US- China Trade Deal

The White House, Trump decided, would give China's state-owned ZTE Corp. a "reprieve from potentially crippling USA sanctions in exchange for Beijing removing tariffs on billions of dollars of us agricultural products", explained the Wall Street Journal in a May 15 front page story.

"Our Trade Deal with China is moving along nicely, but in the end we will probably have to use a different structure in that this will be too hard to get done and to verify results after completion", Trump said on Twitter on May 23.

President Trump has already suggested that there is a deal to be done (surprise surprise) but it looks like its not a very favourable one for ZTE. But it failed to commit to shrink that deficit by any specific amount. Mr Trump said on Tuesday the United States may instead require that ZTE appoint a new board of directors and pay "very large fine" of perhaps US$1.3 billion. It does seem like the minor trade war between China and the United States is about to come to an end, however, and that ZTE will keep beating for the time being.

In return, China would eliminate tariffs on USA agriculture or agree to buy more farm products from the United States.

"In other words", the Journal goes on to repeat itself to emphasize its startling disbelief, "Mr. Trump is undermining U.S. credibility on sanctions in order to dodge tariff retaliation on the U.S. Farm Belt that Mr. Trump invited with his protectionism".

Trump's proposal ran into immediate resistance in Congress, where Republicans and Democrats accused the president of bending to pressure from Beijing to ease up on a company that has admitted to violating sanctions on Iran.

After boasting of the deal's benefits for farmers in tweets on Monday, Trump first indicated on Tuesday he was having second thoughts as some of his loyalists publicly criticized the agreement.

Trump showed waning enthusiasm for the deal May 22, saying he wasn't pleased with the recent trade talks with China that were just getting started.

U.S. Commerce Secretary Wilbur Ross plans to visit Beijing in early June to work out the details of a broad commitment from China to increase its purchases of American goods - particularly of energy and farming goods, his office said May 22.

Last month, the administration proposed tariffs on $US50 billion ($66 billion) on Chinese imports to protest the forced technology transfers. Representatives for China's Foreign Ministry did not immediately respond to a request for comment on Trump's statement.