Trump warns of ‘complete decoupling’ from China despite talks

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Trump warns of ‘complete decoupling’ from China despite talks
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President Donald Trump warned Thursday the United States had the option to separate from China’s deeply intertwined economy, despite the powers’ pledges to move forward on a trade deal. | AFP

Lighthizer told a congressional committee this week that China so far has been living up to the terms of a “phase one” agreement that eased the dispute, but that decoupling the two economic giants was now impossible.

Lighthizer described himself as a hardliner on China policy, and outlined the Trump administration’s plans to “reset” the World Trade Organization, largely so that it can better rein in Beijing’s policies, which he says run afoul of free trade rules. On Friday, Chinese foreign ministry spokesman Zhao Lijian told a regular press briefing that “trying to artificially cut global industrial and supply chains, and using political power to change the laws of the economy, is neither realistic nor wise”.Secretary of State Mike Pompeo said a senior Chinese official also confirmed to him Beijing’s commitment to phase one, which includes China stepping up purchases of US products.

Senior US diplomat David Stilwell, who accompanied Pompeo, said the United States insisted on a “more reciprocal” relationship but declined to discuss the discussions in depth.

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