Mnuchin Says China Deal Is Likely to Be Signed in November

RIYADH, Saudi Arabia — Treasury Secretary Steven Mnuchin said on Wednesday that the United States and China were on track toward signing the first phase of a trade agreement next month, offering fresh optimism that the long-awaited deal may finally materialize.

But plans to have President Trump and President Xi Jinping of China sign the agreement next month when both leaders meet at the Asia-Pacific Economic Cooperation summit in Santiago were complicated by the Chilean government’s decision to cancel the summit because of riots and protests.

A White House spokesman said the administration hoped to complete the “historic trade deal” within the same time frame.

Mr. Trump announced on Oct. 11 that the world’s two largest economies had reached a preliminary agreement on a more limited trade deal that could help ease tensions in an economically damaging trade war. The deal, which is still being finalized, would prevent future tariff increases and lock in intellectual property protections in China, as well as ensure Chinese purchases of American agriculture.

“As you know, we’re going to be in Chile together for a big summit,” Mr. Trump said on Oct. 11 about signing the accord. “And maybe it’ll be then, or maybe it’ll be sometime around then.”

The cancellation could delay that signing while the leaders look for another venue to meet. But it is unlikely to change the outcome on whether a deal will be signed altogether, a person familiar with the deliberations said.

Before the announcement, Mr. Mnuchin said the United States was “looking forward to President Trump and President Xi signing Phase 1 of our important trade agreement later next month when they’re together in Chile,” adding, “I think that would be an important economic achievement for both of us.”

Mr. Mnuchin’s public comments came on the second day of the Future Investment Initiative conference in Riyadh. Mr. Mnuchin withdrew from participating in last year’s conference after the killing of Jamal Khashoggi, a dissident journalist. But he appeared onstage this year, as did Jared Kushner, Mr. Trump’s senior adviser and son-in-law. On Tuesday, Mr. Mnuchin and a delegation from the United States met with Crown Prince Mohammed bin Salman of Saudi Arabia.

The trade war between the United States and China has been a drag on the global economy, slowing growth in both countries and around the world.

The two countries are putting the finishing touches on a pact that would address issues such as China’s treatment of foreign intellectual property, forced technology transfer, currency transparency, improved access for American financial services firms to China’s market and, eventually, a commitment by China to buy as much as $50 billion a year of farm products from the United States.

The agreement is expected to go beyond commitments that China has already made with recent changes to its foreign investment laws.

The United States and China are also developing an enforcement mechanism that would include dispute settlement offices in both countries that could resolve concerns that arise.

It is not clear if China would have to agree not to retaliate if the United States determined that it was in violation of the agreement and imposed new tariffs on Chinese goods. That demand was one of the factors that caused China to back out of talks earlier this year.

Mr. Mnuchin and Robert Lighthizer, Mr. Trump’s top trade negotiator, have yet to make a recommendation to the president about the next round of tariffs that are scheduled to go into effect in mid-December. Chinese officials have argued that all of the tariffs on $360 billion worth of Chinese imports should be rolled back as part of any deal.

Vice Premier Liu He of China spoke by phone with Mr. Mnuchin and Mr. Lighthizer last week, and they are expected to speak again this week. Lower-level officials from both countries have been in regular contact.

Mr. Mnuchin has dismissed concerns that American tariffs have contributed to slowing global economic growth, and on Wednesday he promoted the strength of the American consumer and low levels of inflation. He continued to attribute any slowdown in the United States to economic troubles overseas.

“There is no question that the global economy is slowing down,” Mr. Mnuchin said. “That’s had some modest drag on the U.S. economy.”

Ana Swanson contributed reporting from Washington.

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