China welcomes potential Mnuchin visit but analysts remain pessimistic
Beijing has welcomed plans for by US Treasury Secretary Steven Mnuchin to visit China for trade discussions amid heightening economic tensions between the two countries.
The world’s two largest economies have been embroiled in a trade battle, with the latest bout of tit-for-tat action seeing the Trump administration threatening to impose tariffs on $50bn-worth of Chinese imports in an effort to stop Chinese companies from stealing the intellectual property of American firms.
Mnuchin initially reported that a trip was "under consideration" at the International Monetary Fund and World Bank spring meetings in Washington on Saturday.
In a statement posted online, China’s Ministry of Commerce said: "The Chinese side has received information that the US side hopes to come to Beijing to discuss economic and trade issues. China welcomes this."
Mnuchin is understood to have already met with China's new central bank governor, Yi Gang, during the weekend’s meetings to discuss giving international competitors easier access to Chinese markets.
The Treasury Secretary also commended the Chinese government, describing it as "very helpful" in its assistance with sanctions against North Korea.
Despite these new positive vibes, many analysts remain skeptical about an end to economic tensions between the two economic powers.
Christopher Balding, associate professor at the HSBC Business School in Shenzhen, said: "I wouldn’t read too much into it. If it happens it would be a positive sign, but there are still a lot of hard issues to discuss ahead. It's very questionable whether this is just talking about whether or not there is possibility for a deal, or there's actual movement."
Such concerns are perhaps best illustrated by the fact that just two weeks ago Donald Trump commanded his trade team to identify a further $100bn in Chinese imports to be hit with tarrifs.
Similary, Beijing has made a firm promise of retaliation to any additional trade hurdles that might be placed in its way by the US.