New York (TIP)- China‘s commerce minister urged Chinese companies investing in the US to be given “equal treatment” and called US tariffs on Chinese imports “discriminatory”, when he met US Commerce Secretary Gina Raimondo this week, his ministry said on Thursday, August 31. Wrapping up her four-day visit to Beijing on Tuesday, August 29, Raimondo said she had not expected any breakthroughs but was “leaving with some optimism,” after engaging with top Chinese leaders, including with commerce minister Wang Wentao.
The world’s two biggest economies used to be each other’s largest trade partners, and while both governments publicly oppose decoupling, China is now trading more with Southeast Asia and the US with neighbouring Canada and Mexico. A tariff war erupted between Beijing and Washington under the previous Trump administration. Since then, US President Joe Biden and some US allies have restricted exports to China of advanced semiconductors and the equipment to make them, citing security concerns. “China demands the US give equal treatment to Chinese enterprises investing in the US in terms of market access, regulatory enforcement, public procurement and policy support,” Shu Jueting, a commerce ministry spokesperson, said.
“China expressed serious concerns concerning the US’ discriminatory (Section) 301 tariffs,” she added. The commerce secretary was the latest Biden administration official to visit China in a bid to strengthen communications, particularly on economics and defence, amid concern that friction between the superpowers could spiral out of control.
“We believe that a better way to de-risk is to bring China-US economic and trade relations back to a stage of sound and steady development,” Shu said. Wang and Raimondo have agreed to meet at least once a year.
Oil prices rise on supply picture, weak Chinese data weighs
Oil prices rose on Thursday, August 31, boosted by a large drawdown in US crude inventories and production cuts by OPEC+, but a slowdown in China’s manufacturing activity limited gains.
Brent crude futures for October, expiring on Thursday, rose 45 cents, or 0.5%, to $86.31 a barrel by 1004 GMT. The more active November contract was up 25 cents, or 0.3%, at $85.49.
US West Texas Intermediate crude futures for October rose 29 cents, or 0.4%, to $81.29.
US government data on Wednesday showed the country’s crude inventories fell by a larger than expected 10.6 million barrels last week, depleted by high exports and refinery runs.
Meanwhile, analysts expect Saudi Arabia to extend a voluntary oil production cut of 1 million barrels per day (bpd) into October, adding to cuts put in place by the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a combination known as OPEC+.
“With Brent prices having stalled in the mid-$80s … the prospect of those Saudi barrels returning to the market any time soon looks slim and the impact is increasingly being felt across the world as commercial stock levels of crude and fuel products continue to drop,” said Saxo Bank analyst Ole Hansen.