WASHINGTON: Senior US officials will discuss trade disputes next week with a top Chinese economic official when he visits Washington, a senior US official said on Friday as President Donald Trump considers new tariffs on steel imports.

The talks will be led by Trump’s trade envoy, Robert Lighthizer, who will meet with senior Chinese economic adviser Liu He, the official said.

US officials say they do not expect a major breakthrough in the discussions.

Trump has long sought a way to a more balanced trade relationship with China and threatened to impose a big “fine” against China to protect American intellectual property. The US official said Trump had been discussing imposing a global tariff on imports of steel from China and other countries.

A source close to the White House said he had expressed interest in imposing a tariff on steel imports of at least 24 per cent, but a White House spokesman said no final decision had been made.

The prospect of a global tariff sent steel shares rising after hours with United States Steel Corp and AK Steel Holding Corp up more than 3pc.

The Commerce Department on Feb. 16 recommended that Trump impose stiff curbs on steel imports from China and other countries and offered the president several options, ranging from global and country-specific tariffs to broad import quotas.

A blanket tariff on steel would cover every steel and aluminum product entering the American market from China, the world’s largest steel producer.

“No final decisions have been made. As with every decision he makes, the security of the American people and the American economy will be the president’s primary concerns while he considers his potential options,” White House spokesman Raj Shah said.

“President Trump is committed to achieving fair and reciprocal trade relationships that protect the American worker and grow our economy,” he said.

Liu, a Harvard-trained economist and trusted confidant of Chinese President Xi Jinping, has emerged as the front-runner to be the next governor of China’s central bank, according to sources with knowledge of the situation. Liu is the top adviser to Xi on economic policy and is also expected to become vice premier overseeing the Chinese economy.

China has expressed concerns over excessive protectionism in the US steel sector and urged restraint. It has also said it will oppose any “unfair and unreasonable” trade measures by countries such as the United States.

American steel companies have pressed the administration to impose trade measures to curb excess steel capacity and surging imports they say are undermining the US industry.

Exports from China to the United States reached 1.18 million tonnes last year. China produces a total of 800m tonnes of steel each year, equal to about half of global output.

In a meeting with a bipartisan group of US senators and representatives at the White House earlier this month, Trump signaled he would take at least some action to restrict imports of both steel and aluminum.

China woos foreign investment

In Beijing, the banking regulator has introduced steps to cut the red tape for foreign banks, state media agency Xinhua said on Saturday, as part of the government’s ongoing effort to promote investment in the country’s fast-growing financial sector.

The China Banking Regulatory Commis­sion (CBRC) has revised its rules for foreign banks, scrapping approval procedures in four areas including overseas wealth management products and portfolio investment funds, the report said. The new policies became effective on Feb 13, it said.

The changes mean foreign banks will now only need to report their services to authorities rather than obtaining approval in advance, while steps have been simplified for setting up new branches, appointing executives and issuing bonds.

The commission has also clarified the procedures and application documents for foreign-funded banks to invest in domestic banking institutions, the report said.

CBRC in December issued draft measures for easing market access for foreign lenders, and cutting red tape to create a level playing field for such activities as branch openings, debt fundraising and examination of senior executives.

The rules announced on Saturday appear to be a confirmation of the draft measures, although this was not confirmed.

In November, Vice Finance Minister Zhu Guangyao said the country would raise the foreign ownership limit in some joint-venture firms in the futures, securities and fund markets to 51 per cent from the current 49pc. The plan has yet to be implemented.

Published in Dawn, February 25th, 2018