China's foreign ministry disputed earlier reports that it had offered to slash its annual trade surplus with the U.S. by $200 billion, saying that trade negotiations in Washington were still in progress.
At a regular press conference on May 18, ministry spokesperson Lu Kang denied that an offer had been made.
"The rumor is not true. As far as I know, relevant consultations are still in progress and the consultations are constructive," Lu said.
Two posts on Chinese state social media also disputed the reports, Bloomberg News said.
Earlier, media reports, citing unnamed U.S. officials, said China on May 17 had proposed to U.S. President Donald Trump a package of concessions and increased purchases of U.S. goods to reduce the deficit by up to $200 billion a year.
A source said Boeing Co., which sells about a quarter of its commercial aircraft to Chinese clients, would be a prime beneficiary if Trump accepted China's offer, Reuters reported. The package could also include the removal of Chinese tariffs on about $4 billion worth of U.S. farm products such as fruit, nuts, pork, wine and sorghum, another source said.
The reported value of China's offer matches the $200 billion reduction of the U.S. trade deficit with China that the Trump administration demanded in the first round of trade talks held in Beijing in early May. The U.S. merchandise trade deficit with China reached $375 billion in 2017.
China, for its part, has also made demands, including the possible easing of a U.S. ban on China's ZTE Corp. U.S. President Donald Trump said May 17 his decision to order a review of the ban was made at Chinese President Xi Jinping's request.
Trump on May 17 met with Vice Premier Liu He, Chinese President Xi Jinping's top economic adviser and the leader of the Chinese trade delegation.
"We aren't popping any champagne corks yet" over China's reported offer, said Robert Carnell, chief economist and head of research, Asia-Pacific at ING, in a note. "The U.S. has not yet said it accepts. We do not know the details. But it is a huge deal if so."
