Trump says US Bill on Hong Kong does not help China trade talks

US President Donald Trump walks to Marine One after speaking with reporters on the South Lawn of the White House before departing for London on Dec 2, 2019. PHOTO: AP

WASHINGTON (REUTERS, AP) - US President Donald Trump on Monday (Dec 2) said US legislation backing protesters in Hong Kong did not make trade negotiations with China easier, but added he believes Beijing still wants a deal with the United States.

The law "doesn't make it better, but we'll see what happens," Trump said, talking to reporters. He gave no indication when the deal would be finalised.

Meanwhile, two top US officials on Monday said a deal could still happen this year depending on China's actions.

Washington and Beijing have yet to ink a so-called "phase one" trade agreement announced in October as the trade war between the world's two largest economies enters its second year with tariffs on both sides rocking the global economy.

"The Chinese are always negotiating. I'm very happy where we are," Trump said as he prepared to depart the White House for a Nato summit in London. "The Chinese want to make a deal. We'll see what happens."

Trump last week signed a new law backing protesters in Hong Kong and threatened China with possible sanctions on human rights. Beijing warned it could retaliate.

On Sunday, news site Axios reported the law had stalled the trade deal.

Trade experts and people close to the White House have said the agreement may not be signed until next year.

But White House adviser Kellyanne Conway separately told reporters at the White House on Monday that the deal was still possible before the end of the year.

US Commerce Secretary Wilbur Ross, in a television interview, cited a further 15 per cent US tariff on about US$156 billion (S$213 billion) worth of Chinese imports set to take effect Dec 15 as a natural deadline and said time was running out for China to avoid it.

"If nothing happens between now and then, the president has made quite clear he'll put the tariffs in," Ross told Fox Business Network.

The fresh levy would land in the middle of the vital US holiday shopping season, but Ross said it would not hurt holiday shopping because stores have already stocked up.

Asked if the Trump administration was willing to roll back current tariffs on China, Ross added: "It all depends on their behaviour between now and then."

Conway told reporters that phase one deal was still being written up. Ross said it would address Beijing purchases of US farm products as well as some intellectual property and other structural reforms, but gave no other details

Separately, Trump is complaining the House Judiciary Committee will hold an impeachment inquiry hearing while he attends a Nato summit that comes at a critical moment for the 70-year-old military alliance.

Speaking to reporters at the White House, Trump says the Nato trip is "one of the most important journeys we make as president" and the summit date was established a year ago.

He says Republicans are united in opposing impeachment and the inquiry is backfiring on Democrats, adding "I think it is going to be a tremendous boost for the Republicans."

With the ongoing impeachment inquiry hovering over the trip, Trump says he will continue to pressure European allies to step up their defense spending, saying "it has not been a fair situation for us."

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