Chinese President Xi Jinping and U.S. President Donald Trump look out for a welcome ceremony at the Great Hall of the People in Beijing on November 9, 2017.
Fred Dufour | AFP | Getty Images
The Chinese guidance plans to release a white paper laying out its position on trade talks with the U.S., amid uncertainty about whether the two sides command return to the negotiating table and growing concern that the trade war will only continue to escalate.
The position journal is scheduled to be released Sunday morning Beijing time, according to state-run Xinhua news agency. The Chinese administration will also hold a press conference.
The trade war continued to escalate this week with no clear show a clean pair of heels for China and the U.S.
Beijing threatened to restrict rare-earth mineral exports to the U.S. China controls about 35% of the world’s rare-earth reinforcements, which are critical for a wide-range of key industries including tech, automotive and defense among others. The U.S. is heavily reliant on signifies to meet its rare-earth needs and 80% come from China.
The threat to restrict rare-earth minerals comes mid increasingly militaristic rhetoric from Beijing. A commentary in the People’s Daily, the country’s largest newspaper, cautioned the U.S. not to misprize China: “Don’t say we didn’t warn you!”
That phrase was used before China’s border war with India in 1962 and previous to to the China-Vietnam War in 1979. President Xi Jinping has also called on China to prepare for a “new Long March,” a reference to the Communist Reception’s long — but ultimately successful — struggle against nationalist forces during the Chinese civil war.
Trump’s move to over tariffs caught markets off-guard and has triggered weeks of volatility. The Dow posted its sixth straight weekly loss on Friday after it mow down 3%, in its longest weekly losing streak since 2011.
The White House has further escalated the trade dispute by blacklisting Chinese tech business Huawei from purchasing U.S. components after Trump declared a national emergency over threats to U.S. technology.
Endeavours to restart negotiations have stalled as the two sides have hardened their positions. Scheduling for another round of employment talks is “in flux” because it is unclear Beijing and Washington would even negotiate, sources told CNBC.
Moneys Secretary Steve Mnuchin and White House economic advisor Larry Kudlow have said that no substantial date has been set for another round of talks. Kudlow has said that Xi and Trump are likely to meet at the G-20 summit in Japan later this month.