Chinese officials are growing hesitant to pursue a broad trade deal with the U.S. in negotiations set to begin this Thursday, people familiar with the matter told Bloomberg News.
Vice Premier Liu He, who will lead negotiations for China, told dignitaries that his offer to the U.S. will not include commitments on reforming Chinese industrial policy or government subsidies, according to to Bloomberg. These are among the Trump administration’s main demands in the trade talks.
The U.S.-China trade talks also near as Trump faces an impeachment inquiry in the House of Representatives, after the president suggested in a phone call with Ukraine’s president that the country investigate Joe Biden, a potential 2020 rival, and his son Hunter. People close to the administration, however, say the impeachment inquiry has not impacted trade talks with China.
As trade negotiators prepare for this week, tensions have also grown after reports revealed that Trump officials were weighing some curbs on U.S. investments in China, including possibly blocking all U.S. financial investments in Chinese companies. White House trade policy director Peter Navarro, however, denied those reports and called them “fake news.”