MNI INTERVIEW: China-US Deal Possible After Leaders Meet

A meeting between China and U.S. leaders will likely result in a trade deal, a prominent policy advisor told MNI, noting the China-EU Bilateral Investment Treaty (BIT) may also see progress this year. 

Beijing has no appetite for a trade war and responded with restraint to the U.S.’s additional, across-the-board 20% tariffs, said Wang Huiyao, president of the Center for China and Globalization (CCG), pointing to China’s more restrained 10-15% duties on 100 American categories. 

Washington and Beijing will most likely return to the negotiating table to advance follow-up trade agreements, he argued, noting a meeting was on both countries’ agenda.   

President Donald Trump will find resolving the Russia-Ukraine war without China’s involvement difficult and the U.S. will need cooperation to address other global conflicts in the Middle East and the nuclear standoff on the Korean peninsula, he added. The two counties have ample common ground to help forge cooperation, said Wang, a former Counselor to the State Council of China appointed by the Chinese Premier. (See MNI INTERVIEW: China-U.S Yuan Deal Unlikely - Guan Tao)

CHINA-EU 

Beijing will push for new initiatives under the China-EU Comprehensive Agreement on Investment (CAI) this year amid the 50th anniversary of diplomatic relations between China and the trading bloc, Wang said. Though outcomes will also depend on whether tensions escalate between Trump and Europe, he added. 

The agreement, stalled since 2021, covers market access and sustainable development, with progress hinging on EU unity amid U.S. pressure. 

China is actively extending goodwill to strengthen ties with Europe, which suggested relations will improve, Wang predicted. 

Amid the restructuring of global industrial chains, China’s vast market offers immense opportunities for European companies, he said, noting many multinational firms believed succeeding in China is a prerequisite for global expansion. 

Sectors such as tourism, AI, and renewable energy in China also present significant growth potential, he continued. 

China should push full visa liberalisation for all OECD-developed countries to deepen engagement, granting their businesses greater access to help further understanding of China’s evolving marketplace, he suggested. (See MNI INTERVIEW: China To Facilitate O/S Investors-PBOC Official)