Washington: There is a great possibility of a trade deal with China, President Donald Trump has said, ahead of the Chinese Vice Premier Liu He's visit to the US for trade talks.
The US and China will hold the next round of trade negotiations on October 10, the White House announced on Monday, as the two major trading powers tried to end their bruising trade war.
The American side would be led by US Trade Representative Robert Lighthizer and Secretary of Treasury Steven Mnuchin while the Chinese delegation will be led by Vice Premier Liu.
Topics of discussion will include forced technology transfer, intellectual property rights, services, non-tariff barriers, agriculture and enforcement, the White House said.
Responding to question from reporters at the White House, Trump on Monday said that his policy of imposing additional tariff on Chinese products is having its desired results.
"We've taken in tremendous amounts of money in the form of tariffs from China. China has eaten the cost of those tariffs because they've devalued their currency and they've also pumped a lot of money into their system. We have no inflation. If anything, it's going below the number so, therefore, we're entitled to an interest rate cut, he said.
"I hope the Fed does that because we'd be like a rocket ship. We are already the strongest economy in the world and doing better than just about any economy in the world. A lot of people are asking us the secret. But we'd like to see an interest rate cut -- a very substantial one. And whatever else they want to do. But we would be a rocket ship, he said.
Trump said there is a great possibility for a deal with China.
"As to whether or not we make a deal, I don't know. But there's certainly a good possibility. But the relationship is a very good one. We have taken in billions of dollars, he said.
We've had a tremendous amount of money coming in, he added.
As a result of his policies, Trump said the Chinese economy is down, probably, USD 22 or USD 24 trillion.
China, he said, wants to make a trade deal with the US.
"They're down three and a half million jobs since we started doing what we do. Their supply chain is really cracked and broken. They want to make a deal, he said.
China and the US have been negotiating a trade deal for more than 10 months now.
President Donald Trump wants to reach an agreement with the Chinese that reduces the massive trade imbalance between the two countries, which last year climbed to over USD 539 billion.
He also wants China to address the issue of theft of intellectual properties of US companies and their forced coercion inside China.
The Trump administration had first imposed tariffs on Chinese imports last year in a bid to win concessions from China, which responded with tit-for-tat tariffs. The escalating dispute between the world's two largest economies has depressed stock prices and poses a threat to the global economy.
Both sides have made conciliatory gestures ahead of the next round of talks, but a deal remains elusive.
The US postponed a further tariff hike on Chinese goods, and China lifted punitive duties on soybeans. The move helps both American farmers and Chinese pig breeders, who use soy as feed and are struggling with a devastating outbreak of African swine fever.
Referring to the upcoming talks with China, Trump said there is a chance that they could do something very substantial.
"We'll see what happens. In the meantime, we're taking in billions and billions of dollars of tariffs every month and we've never had this. We never took in 10 cents from China and we're taking in billions of dollars and tens of billions a year, he said.
"I think they're coming to make a deal. We'll see whether or not a deal can be made, but it's got to be a fair deal," Trump said.