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U.S.-China talks will be difficult, but reengagement is the right strategy, expert says

U.S.-China talks might be “extraordinarily robust sledding,” however reengagement is the right technique to take, in line with a vice chairman and managing director of a U.S.-based suppose tank.

Wendy Cutler of the Asia Society Coverage Institute’s feedback got here after U.S. Trade Representative Katherine Tai on Monday said she is looking forward to negotiations with the Chinese.

Cutler informed CNBC’s “Squawk Box Asia” on Tuesday that China is totally different from at present than it was two years in the past earlier than the so-called “phase one” trade deal that was signed with the Trump administration.

Beijing is now very assured and has a “very hardline angle,” mentioned Cutler who was previously Assistant U.S. Commerce Consultant for Japan, Korea and APEC Affairs.

“It should be robust sledding, however then once more, I believe Ambassador Tai, by laying out the very fact she needs to reengage with China — that’s the proper technique for now,” she mentioned.

Tai on Monday additionally mentioned she does not know if she will be able to belief Beijing till she has the prospect to talk to her counterparts — a stance that international authorized marketing consultant at Hogan Lovells, Benjamin Kostrzewa, agreed with.

“I believe that she is true to return into these talks with some suspicion,” mentioned Kostrzewa, who was the previous assistant common counsel on the Workplace of the U.S. Commerce Consultant. “The discussions between the Biden administration and China … have been very troublesome thus far.”

He informed CNBC’s “Capital Connection” on Tuesday that it is changing into harder to achieve a consensus due to disagreement on each side, and there is “no actual off-ramp” for lots of the tensions between the U.S. and China.

Cutler from Asia Society mentioned bilateral talks will not be a simple, clear highway towards decision.

Tai gave the impression to be real looking and acknowledged that China could reject addressing U.S. considerations, wherein case Washington would use different instruments to reply, Cutler mentioned.

Nonetheless, the previous commerce negotiator mentioned she sees a “doable thaw in relations” between Washington and Beijing, noting that the two presidents spoke on the phone recently.

Tai’s announcement that she’s going to reengage along with her Chinese language counterpart additionally alerts a willingness to see if there’s a option to deescalate tensions, she added.

— CNBC’s Amanda Macias and Evelyn Cheng contributed to this report.


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