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China needs to make policy changes to avoid cold-war situation: Pence

China needs to make policy changes to avoid cold-war situation: Pence

One way Beijing could do that is by offering to reach a bilateral free trade deal with Washington that includes all of the concerns Trump has addressed: be it currency manipulation, intellectual property rights, concerns about state-owned enterprises.

However, the chasm between the two sides on issues such as Chinese industrial policy and intellectual property theft remained vast and any post-G20 negotiations were likely to be hard, he said.

This meeting may prove to be a good opportunity for China, if not the last.

It was not immediately clear if the response could help bridge a wide gap between the two on trade or meet Trump's demands for change.

The late November meeting between US President Donald Trump and Chinese President Xi Jinping in Argentina is unlikely to bear any fruit, Jude Woodward, author of "The US vs China: Asia's New Cold War", told Sputnik.

Trade will be one of the issues up for discussion when the delegation arrives, a Treasury spokesperson revealed.

In an interview with Washington Post columnist Josh Rogin in which Pence focused on the White House's Indo-Pacific policy, the vice president said his trip to the region "is meant to show the United States has no intention of ceding influence or control" to Beijing.

Chinese Commerce Ministry spokesman Gao Feng, asked on Thursday about the Chinese response, said that "high-level" contact had resumed since Trump and Xi spoke by phone.

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Speaking to reporters Wednesday, Malmstrom said she had told Lighthizer that a tit-for-tat trade war would be damaging to both Europe and the United States. Trump has also said that if the two can't reach a deal, Washington would impose tariffs on all remaining Chinese imports, about $267 billion worth.

The opening bid falls short of numerous core demands the White House has repeatedly detailed as must-haves in trade talks with Beijing, including addressing technology transfers and intellectual property theft, according to one of the people briefed.

The U.S. president has repeatedly criticized Chinese practices of industrial subsidies, intellectual property theft, the lack of a level playing field for U.S. companies in China and the trade deficit.

If Beijing does not produce proposals that satisfy Washington, the United States is prepared to increase economic, diplomatic and political pressure on China, Pence told the newspaper.

In comments made before the Chinese response, Wu Baiyi, the director of the Institute of American Studies at the state-run Chinese Academy of Social Sciences, said that a January 1 tariff increase would imperil efforts to reverse trade tensions.

Pence also said China must offer concessions on intellectual property theft, forced technology transfer, restricted access to Chinese markets, respect for worldwide rules and norms, and efforts to limit freedom of navigation in global waters, among other issues.

"This is one of the major goals that they (Chinese officials) are working hard on-to prevent those tariffs from coming into force early next year".