Talks better option than 'economic intimidation'

Even after Vice-Premier Liu He spoke by phone with the US treasury secretary on Saturday calling for concerted efforts to maintain the stability of trade ties between their respective countries, the Trump administration has made it clear that it intends to squeeze as much as it can from China.

Having already slapped hefty tariffs on steel and aluminum imports from China and threatening to impose tariffs on a list of other Chinese products under Section 301 of the Trade Act of 1974, the United States reportedly urged China in a letter last week to cut the tariffs on US automobiles, buy more US semiconductors and give US companies greater access to the Chinese financial sector.

By forcing China to open up its market to US companies in this way, the Trump administration will be hoping to narrow the bilateral trade deficit and create domestic jobs, as well as boosting its support ahead of the mid-term elections in November.