BEIJING (Reuters) - China and Norway signed a pact on Friday to resume free trade negotiations, marking the end of a six-year diplomatic freeze, a move China called internationally significant, against the backdrop of a rise in protectionist sentiment worldwide.

Norway's Prime Minister Erna Solberg (R) and China's Premier Li Keqiang inspect honour guards during a welcoming ceremony outside the Great Hall of the People in Beijing, China April 7, 2017. REUTERS/Jason Lee

The memorandum of understanding was one of six pacts covering cooperation on economic development, technology, health, science and sport during Norwegian Prime Minister Erna Solberg’s visit to China, the first since the countries resumed diplomatic relations in December.

Until then relations between Oslo and Beijing had been on ice, following the award of the 2010 Nobel Peace Prize to jailed Chinese dissident Liu Xiaobo.

“Your visit to China shows that our relations will again, from a new starting point, go on a long journey,” Chinese Premier Li Keqiang told Solberg ahead of a formal two-way meeting.

It was important to find “common areas of interest” as relations normalize, Solberg added.

Li emphasized the international significance of renewal of the talks, given recent setbacks to globalization and rising protectionism, said a Chinese Foreign Ministry official who briefed reporters on the meeting.

“The resumption of free trade negotiations in this context is very important,” said Liu Weimin, the vice-director of the ministry’s European department.

Liu Xiaobo, who was involved in the 1989 Tiananmen Square pro-democracy protests crushed by the Chinese army, was jailed for 11 years in 2009 on subversion charges for organizing a petition urging an end to one-party rule. He remains in prison.

The Nobel peace prize winner is chosen by a committee in Oslo, while other recipients of the annual awards are decided in Stockholm.

The row between Oslo and Beijing led to difficulties for Norwegian salmon exporters.

Solberg will travel to the business hub of Shanghai and the eastern city of Hangzhou before returning to Beijing to meet President Xi Jinping on Monday.</s>China and Norway have signed a pact to resume free-trade negotiations, signaling a restoration of diplomatic ties six years after Beijing froze relations with Oslo over the awarding of the Nobel Peace Prize to an imprisoned Chinese dissident.

Chinese Premier Li Keqiang and Norwegian Prime Minister Erna Solberg yesterday held talks and witnessed the signing of cooperation documents ranging from the resumption of a free trade agreement negotiations, and science and technology, to sports and health.

Solberg's visit is the first by a Norwegian Prime Minister since bilateral ties deteriorated after the Oslo-based Nobel Committee conferred the 2010 Nobel Peace Prize on convicted Liu Xiaobo who campaigned for civil rights.

Liu, 63, a literary critic, writer, professor and human rights activist, had called for political reforms and the end of the one-party rule of the Communist Party of China (CPC).

China calls him a criminal. He was sentenced to 11 years in jail on December 25, 2009, after a court in Beijing convicted him of engaging in activities designed to overthrow the government and continued to languish in prison.

Till 2012, Nobel Prize was viewed with contempt by China and its official media as it was awarded to the Dalai Lama for his peaceful struggle for the betterment of Tibetans and to Liu.

However, Beijing welcomed Nobel Prize for literature to Chinese writer Mo Yan in 2012, saying that Mo's "victory reflects the prosperity and progress of Chinese literature, as well as the increasing influence of China".

China and Norway agreed to normalise relations in December after Oslo pledged to respect China's sovereignty and territorial integrity, state-run Xinhua news agency reported.

Receiving Solberg at the Great Hall of the People yesterday, Li said that China-Norway relations had got back on track, which deserved to be treasured by both sides.

Li called on Norway to adhere to the one-China principle and work with China in the spirit of mutual respect, treat each other on an equal footing, and respect each other's core interests and major concerns to enhance political trust to reboot the relationship.

"China is willing to restart free trade agreement negotiation and political consultation mechanisms with Norway, establish an inter-governmental energy policy dialogue and increase the exchanges between the business community," Li said.

Li said China and Norway could strengthen cooperation in energy and marine projects to explore third markets, enhancing exchanges in various fields including agriculture, fishery, husbandry, science and innovation, and law enforcement.

"China is pushing forward a new round of opening-up to make the country the most attractive investment destination. China welcomes Norwegian enterprises and sovereign wealth funds to expand investment in China for win-win outcomes," he said.

Solberg said Norway would follow the guideline of a joint statement on the normalisation of bilateral ties, uphold the one-China policy, respect China's core interests and major concerns, and enhance political trust with China.

Solberg said Norway hoped for the early resumption of bilateral free trade agreement negotiations and would expand cooperation in areas like agriculture, fishery, environmental protection, finance, investment and winter sports.

"Norway supports China to play an active role in the Arctic Council," Solberg added.</s>Industry Minister, Monica Mæland, confirmed that Norway and China will resume negotiations on a free trade agreement within five months.

On Thursday, Mæland met representatives of the Chinese Ministry of Commerce in Beijing.

Prime Minister, Erna Solberg, is leading a Norwegian delegation on an official visit to China, with the resumption of political and economic cooperation between China and Norway being the main purpose of the visit.

‘We have agreed to start free trade negotiations again within five months’, she said.

Negotiations between China and Norway came to a standstill in 2010.

‘I feel that we are both keen to create a modern, forward-looking agreement. The world looks different in 2017 than it did in 2010.

China is our most important trading partner in Asia. Putting in place a system of agreements relating to that fact is very important for Norwegian industry in the future,’ said Mæland.</s>Norwegian Prime Minister Erna Solberg began a trade trip to China on Friday, signaling a restoration of diplomatic ties between the two countries, six years after China cut relations over a Chinese dissident's selection as Nobel Peace Prize winner.

Solberg met with Chinese Premier Li Keqiang during a welcoming ceremony, in which the premier told Solberg the visit "symbolizes the normalization of the China-Norwegian relationship."

China cut off ties with Norway in 2010, after the Nobel committee awarded its peace prize to Liu Xiabao, a Chinese dissident convicted of subversion in 2009 for writing a document calling for democracy in China.

Despite Norway's government having no control over the peace prize selection process, China suspended a bilateral trade deal with Norway and restricted imports of Norwegian salmon.

Solberg told Li she thinks the two countries can "find a lot of common areas of shared interests to work together."

An official statement from Norway's government named combating climate change as one of the areas for possible cooperation, and said China is "playing a key role" in the area already.

The Chinese Foreign Ministry said in December the two countries had restored normal relations after Norway "made important and explicit statements on issues concerning China's sovereignty and territorial integrity."</s>Norwegian Prime Minister Erna Solberg (left), walks with Chinese Premier Li Keqiang during a welcome ceremony outside the Great Hall of the People in Beijing, China on Friday. | Photo Credit: AP

Norway’s Prime Minister is visiting China as part of a restoration of full contacts between the two countries more than six years after Beijing froze Oslo out over the awarding of the Nobel Peace Prize to an imprisoned Chinese dissident.

Following a welcoming ceremony on Friday, Erna Solberg was told by Chinese Premier Li Keqiang that her visit symbolized the normalization of the China-Norwegian relationship.

In 2010, Norway’s Nobel committee awarded Liu Xiaobo the peace prize, infuriating China. Although Norway’s government has no say over the Nobel panel’s choices, China suspended a bilateral trade deal and restricted imports of Norwegian salmon.

In December, the countries said normal relations have resumed. The Chinese Foreign Ministry then said that Norway “made important and explicit statements on issues concerning China’s sovereignty and territorial integrity.”</s>BEIJING — Norway's prime minister began a visit to China on Friday as part of a restoration of full contacts between the two countries, more than six years after Beijing froze Oslo out over the awarding of the Nobel Peace Prize to an imprisoned Chinese dissident.

Following a welcoming ceremony Friday, Erna Solberg was told by Chinese Premier Li Keqiang that, "Your visit symbolizes the normalization of China-Norwegian relationship."

Solberg, who was accompanied by Foreign Minister Borge Brende and a trade delegation, replied that the normalization process would help the countries "find a lot of common areas of shared interests to work together."

"China is playing a key role in the efforts to combat climate change, and I welcome the fact that this is high on Premier Li's agenda," a Norwegian government statement quoted Solberg as saying. It said Li expressed an interest in strengthening between Norway and China in the Arctic.

In 2010, Norway's Nobel committee awarded dissident Liu Xiaobo the peace prize, infuriating China. Although Norway's government has no say over the Nobel panel's choices, China suspended a bilateral trade deal and restricted imports of Norwegian salmon.

Liu was convicted of subversion in 2009 and sentenced to 11 years in prison after he wrote and disseminated Charter '08, a document calling for democracy.

Beijing had always demanded that Norway recognize the "error" of awarding the prize to Liu, but was not specific about what it wanted. China had characterized the awarding of the prize as "gross interference" in its affairs.

In December, the countries said normal relations had resumed. The Chinese Foreign Ministry then said that Norway "made important and explicit statements on issues concerning China's sovereignty and territorial integrity."</s>China ‘s veterinary authorities will come to Norway after Easter to consider reopening of Norwegian salmon imports.

The Ministry of Industry and Fisheries that Minister for Fisheries, Per Sandberg, and Minister for the Chinese food safety authority will meet in Oslo over Easter. Last week representatives from Norway and Chinese food safety authorities met in Beijing, Dagens Næringsliv confirms.

– Hopefully, a lot of challenges regarding market access in China to be resolved before the summer. Our work is to restore the confidence in Norwegian salmon, fisheries envoy representing the Norwegian Sea food concil (Sjømatsrådet) in China, Sigmund Bjørgo said.

Before 2010, Norway had a 90 per cent market share of imports of fresh salmon to China. Today, the figure is down to one and three percent. A report says that salmon exports now can rise to between NOK two and three billion a year, a tenfold increase from the current levels.

– The demand is enormous. It is about facilitating exports to China so they may take place without delay, Sandberg says.

Norwegian Prime Minister, Erna Solberg, Minister of Foreign Affairs Børge Brende and Minister of Industry, Monica Mæland are on an official visit to China this week. The visit comes after relations between Norway and China were normalized in December of last year.</s>Norway will seize new chances to expand a close cooperation with China, Norwegian Prime Minister Erna Solberg said in an interview with Chinese media in Oslo, the country’s capital city before she started a 4-day official visit to China, adding that she felt honored to have a meeting with Chinese leaders during her upcoming visit upon invitation. 

 

 China-Norway relationship deteriorated due to controversy around the Nobel Peace Prize in 2010 and events connected to the Prize. 

 

 After rounds of in-depth dialogues, Norway finally made a clear-cut statement on China’s sovereignty and territorial integrity as well as other agendas involved the latter’s core interest and major concerns after completely getting China’s stances and concerns. 

 

 The ultimate turnabout provided necessary conditions for both sides to rebuild political mutual trust and normalize their ties. 

 

 Chinese and Norwegian governments, last December, issued a statement on their decision to normalize bilateral relationship. 

 

 The normalization of bilateral relations after a six-year-long stagnation does not come easy, Solberg pointed out, vowing that both countries will write new chapter in their cooperation in all fields and embrace new chances in deepening all-round collaboration. 

 

 A closer bilateral collaboration in politics, economy and cultural exchanges, according to the Prime Minister, serves as the foundation for a sustained, stable and healthy development of their ties. 

 

 Norway and China are now restarting their talks on free trade agreement, Solberg disclosed when talking about economic relationship. The agreement will boost two-way trade and investment, create more job positions and as a result benefit the two countries and their peoples, she further explained. 

 

 She said that a large economic and trade team was included in her delegation as well, and the members plan to seek more cooperation potential through a close contact with business circles in Shanghai and Beijing. 

 

 Arctic affairs, oceans, innovation as well as maritime agendas are expected to be key fields where both countries will intensify cooperation, Solberg pointed out. 

 

 Praising bilateral cooperation on arctic affairs as promising, she said that her country is happy to see China's accession to the Arctic Council as an observer, and the polar route will be a shortcut linking Norway and China on the sea. 

 

 The Prime Minister also suggested a bolstered collaboration in utilization of marine resources and treatment on sea pollution. Both countries can also tap cooperation potential in innovation as their colleges and universities have launched some mutually needed cooperation projects in this regard, she added. 

 

 Solberg recalled her Chinese visit decade ago, during which she watched a drama adapted from the writings of Henrik Johan Ibsen, a major 19th-century Norwegian playwright. 

 

 The performance was given by Chinese and Norwegian actors, and the heroine was also from Bergen, Solberg’s hometown. 

 

 Impressed by the show, she was touched by not only the organic combination of Chinese and Norwegian culture, but also the composer’s deep understanding of the two cultures. 

 

 People-to-people exchanges play a key part in bilateral relations, the Prime Minister said, suggesting an enhanced personnel exchange on winter sports. She continued that much more Chinese tourists are now traveling to Norway, especially in winter. 

 

 Norway, as the host of 1994 Winter Olympics as well as a traditional winter sport power, has accumulated a lot of experience in hosting winter games, and both countries, therefore, can beef up collaboration on preparation for winter games as well training of young players, Solberg suggested. 

 

 She also hailed the keynote speech given by Chinese President Xi Jinping at the World Economic Forum held in Davos this January, saying that it is a timely speech amidst the rising tide of trade protectionism. 

 

 China’s support to multilateralism is significant for many small-sized nations, she added. 

 Norway, China to write new chapter of pragmatic cooperation: PM 

 

 By Huang Yundi from People’s Daily 

 

 Norway will seize new chances to expand a close cooperation with China, Norwegian Prime Minister Erna Solberg said in an interview with Chinese media in Oslo, the country’s capital city before she started a 4-day official visit to China, adding that she felt honored to have a meeting with Chinese leaders during her upcoming visit upon invitation. 

 

 China-Norway relationship deteriorated due to controversy around the Nobel Peace Prize in 2010 and events connected to the Prize. 

 

 After rounds of in-depth dialogues, Norway finally made a clear-cut statement on China’s sovereignty and territorial integrity as well as other agendas involved the latter’s core interest and major concerns after completely getting China’s stances and concerns. 

 

 The ultimate turnabout provided necessary conditions for both sides to rebuild political mutual trust and normalize their ties. 

 

 Chinese and Norwegian governments, last December, issued a statement on their decision to normalize bilateral relationship. 

 

 The normalization of bilateral relations after a six-year-long stagnation does not come easy, Solberg pointed out, vowing that both countries will write new chapter in their cooperation in all fields and embrace new chances in deepening all-round collaboration. 

 

 A closer bilateral collaboration in politics, economy and cultural exchanges, according to the Prime Minister, serves as the foundation for a sustained, stable and healthy development of their ties. 

 

 Norway and China are now restarting their talks on free trade agreement, Solberg disclosed when talking about economic relationship. The agreement will boost two-way trade and investment, create more job positions and as a result benefit the two countries and their peoples, she further explained. 

 

 She said that a large economic and trade team was included in her delegation as well, and the members plan to seek more cooperation potential through a close contact with business circles in Shanghai and Beijing. 

 

 Arctic affairs, oceans, innovation as well as maritime agendas are expected to be key fields where both countries will intensify cooperation, Solberg pointed out. 

 

 Praising bilateral cooperation on arctic affairs as promising, she said that her country is happy to see China's accession to the Arctic Council as an observer, and the polar route will be a shortcut linking Norway and China on the sea. 

 

 The Prime Minister also suggested a bolstered collaboration in utilization of marine resources and treatment on sea pollution. Both countries can also tap cooperation potential in innovation as their colleges and universities have launched some mutually needed cooperation projects in this regard, she added. 

 

 Solberg recalled her Chinese visit decade ago, during which she watched a drama adapted from the writings of Henrik Johan Ibsen, a major 19th-century Norwegian playwright. 

 

 The performance was given by Chinese and Norwegian actors, and the heroine was also from Bergen, Solberg’s hometown. 

 

 Impressed by the show, she was touched by not only the organic combination of Chinese and Norwegian culture, but also the composer’s deep understanding of the two cultures. 

 

 People-to-people exchanges play a key part in bilateral relations, the Prime Minister said, suggesting an enhanced personnel exchange on winter sports. She continued that much more Chinese tourists are now traveling to Norway, especially in winter. 

 

 Norway, as the host of 1994 Winter Olympics as well as a traditional winter sport power, has accumulated a lot of experience in hosting winter games, and both countries, therefore, can beef up collaboration on preparation for winter games as well training of young players, Solberg suggested. 

 

 She also hailed the keynote speech given by Chinese President Xi Jinping at the World Economic Forum held in Davos this January, saying that it is a timely speech amidst the rising tide of trade protectionism. 

 

 China’s support to multilateralism is significant for many small-sized nations, she added.</s>* Could be teaming with China's CNOOC and Icelandic oil firm

* May be a rare cooperation after 2010 Nobel Peace Prize row

OSLO, Nov 13 Norway is deciding whether to team up with China to explore for oil in Iceland, Icelandic authorities said, setting up a rare cooperation for the two since a diplomatic row over the award of the 2010 Nobel Peace Prize to Chinese dissident Liu Xiaobo.

Norway has the right to join an exploration licence with Chinese oil firm CNOOC to look for oil in the waters between Iceland and Norway's Jan Mayen, a tiny speck of land in the Arctic.

Communications between Beijing and Oslo have been mostly cool since the 2010 Peace Prize and collaboration in Iceland may be a signal that relations are on the mend.

"We expect an answer from the Norwegian authorities in the last week of November," said Gudni Johannesson, director-general of Iceland's National Energy Authority, emphasising that there had been no diplomatic tensions over the issue.

"It has been a quite normal administrative process," he told Reuters.

Norway's Conservative-led government took office last month and China has signalled that it was up to Norway to repair the relationship, which has damaged business ties and prevented Statoil from exploring for shale gas in China.

Iceland awarded its first two licences in January. In June it gave CNOOC and Icelandic firm Eykon Energy a further licence as it seeks boost its fragile economy.

At the time of the announcement, it was the first time a Chinese oil firm was licensed to look for oil in the Arctic.

Under a 1981 treaty, Norway has a right to take a 25 percent stake in the licences.

It did so with the first two licences Reykjavik awarded in January, to London-listed Faroe Petroleum and Canada's Ithaca Energy together with local Icelandic partners.

China is keen to find natural resources and the Arctic could hold some 90 billion barrels of oil equivalent according to the U.S. Geological Survey. In April it signed a free trade deal with Iceland, abolishing tariffs between the two.

Iceland, still recovering from the 2008 financial crisis that brought the country to its knees, is keen to develop its natural resources to help spur its economy.

There are no figures for how much oil and gas the area where the licences lie could hold.

But the area off Norway's Jan Mayen island, geologically similar, could hold 566 million barrels of oil equivalent, according to a February survey by the Norwegian Petroleum Directorate. That is the equivalent of a sizeable North Sea field.

The Norwegian oil and energy ministry, which is taking the decision, declined to comment. A representative of CNOOC was not immediately available to comment.</s>President Donald Trump thinks China has repeatedly sucker-punched the U.S. economy with unfair trade policies. And he plans to air his grievances with the Chinese leader, Xi Jinping, at their two-day summit starting Thursday in Florida. The meeting will be “very difficult,” said Mr. Trump, whose criticism of Beijing resonates with his voter base.

Is China’s trade behavior as wicked as President Trump says? Not quite. In short, it’s not as bad as it used to be and in some regards has improved. But its bias remains pretty blatant, with plenty of one-sided policies and high tariffs.

Mr. Trump’s rhetoric about Chinese trade actions isn’t always accurate or up-to-date, yet China’s leadership does continue to tilt the game board in its direction. So the president has talked about protectionist steps like imposing steep tariffs on Chinese imports to the U.S. as high as 45 percent.

“Protection will lead to great prosperity and strength” for America, he said in his inauguration speech in January, although he and the administration have somewhat softened their tone lately as the Xi summit approached.

China became the world’s second-largest economy ($11.4 trillion), behind the U.S. ($18.5 trillion), mostly by doing its utmost to promote exports — and to block trading partners, particularly major industrial powers like the U.S., from getting much of a foothold in its fast-growing domestic markets.

Since Mr. Trump’s election, with his calls for crackdowns on China and Mexico, the Chinese regime has sounded conciliatory. At the Davos World Economic Forum, President Xi sang the praises of global free trade and criticized protectionism, which he likened to “locking oneself in a closed room.”

To China’s critics, that’s rich. Richard Atkinson, president of the Information Technology & Innovation Foundation, a Washington think tank, said China believes in free trade rules for the rest of the world — but mercantilism for itself. Under mercantilism, a nation fosters its economy with subsidies, tariffs and other trade barriers to get a leg up on the competition. “China’s systematic mercantilism represents a threat” to the U.S. and the the world at large, Atkinson said.

Still, there’s a lot of fear that Mr. Trump will get too tough on China and a trade war will erupt that would rattle global prosperity. Imports like consumer electronics would suddenly become ruinously expensive. As Hoyt Bleakley, a University of Michigan professor, put it: “A sudden increase in trade costs is a recipe for a slowdown, maybe a recession, as the higher costs disrupt the supply chain.”

China still sees itself as an emerging nation, even though its economic heft is unequaled by any other country except the U.S., which it hopes to supplant at the No. 1 spot in 2030. Indeed, much of China’s population is poor, and its GDP is spread over four times as many people as the U.S. has. While China isn’t growing at a double-digit pace anymore, it is expanding at an enviable rate: 6.7 percent in 2016, compared to 1.9 percent for the U.S.

In Mr. Trump’s view, the outsourcing of American jobs to China — or Mexico, India and other places with lower-paid labor forces — is a tragedy that must be redressed. He has acknowledged this one issue was the key to his election victory. U.S. manufacturing jobs declined 34 percent from 1998 to 2010, during the era of China’s most rapid ascent.

Another sign of an ongoing problem: The U.S. runs a wide trade deficit with China, to the tune of $347 billion last year, according to the U.S. Census Bureau. It’s now half the overall trade gap, an increase from 30 percent a decade before.

Here are the battlegrounds of Sino-American trade relations, which show how China has changed its mercantilistic approach to a degree, but far from what its detractors see as just:

Currency manipulation. This isn’t the problem it used to be, but to President Trump, it’s still an ongoing outrage. Running for office, he pledged he would declare China a money manipulator on “Day One” of his administration. That hasn’t happened.

But he hasn’t backed off his criticism of China for what he sees as deliberately holding down the price of its currency, the yuan. An artificially low yuan makes Chinese wares cheaper in America and American goods costlier there, harming U.S competitiveness.

As recently as February, the president said in an interview with Reuters that China was “the grand champion” of currency manipulation.

Short of tariff punishment, Mr. Trump’s tools to fight back are rather limited. Declaring China a manipulator would, under U.S. law, require Washington to negotiate with Beijing for a year. The goal: Get China to sell dollars and other foreign denominations to drive them down and the yuan up.

If that didn’t work, U.S. alternatives are confined to slapping on a tariff, which Congress has given presidents the power to do unilaterally. China, however, has a history of lashing back at trade sanctions. When the Obama administration imposed tariffs on Chinese tire imports in 2009, China retaliated by taxing U.S. chicken parts.

To be sure, China used to audaciously maneuver to give the yuan an advantage over global competitors. It purchased foreign currencies, especially the U.S. dollar, to shove them higher against the yuan. In the process, it stockpiled enormous foreign currency reserves, reaching almost $4 trillion worth by 2014.

These days, though, any Chinese manipulation is to bolster, not weaken the yuan. Seeking to smooth frictions with the U.S., Beijing has depleted its vast reserves of dollars: The enormous increase in the global supply of greenbacks has pushed down its value, and elevated the yuan by 1 percent this year.

At the same time, the Chinese government has clamped down on its citizens using the yuan to buy assets elsewhere, such as high-end real estate and foreign stocks. That also has acted to keep less of the currency in circulation abroad, and thus scarcer, further adding to its worth.

Will China keep promoting a stronger yuan in the future, or is this just a blip? Maybe it’s for keeps. As a rising international force with investments around the globe, China wants to play nice with others on the currency front. Nevertheless, that doesn’t mean it’s eager to give ground elsewhere.

Tariffs and taxes. Just about all nations impose some kind of tariffs on imports and ladle sales taxes atop them. But the U.S. does this the least, a legacy of helping rebuild countries damaged in World War II and later its mission to bring up emerging ones, such as China. The Chinese Communist-run government had mandated a shift to a semi-capitalist economy in a bid to enhance its people’s living standards.

The combined tariff and tax rate for exports to the U.S. is 9 percent, on average. The tariff rate is around a third of the total, roughly 3 percent. In China, the tax-tariff total is 27 percent (tariff: 7 percent).

In fairness, many other nations charge even higher levels than does China — such as Germany’s 24 percent, Brazil’s 31 percent and Mexico’s 23 percent. The actual tariffs vary, depending on the type of merchandise. China charges a 25 percent tariff on imported cars; the U.S., 2 percent.

A lot of nations don’t tax exports, and that’s largely true of China. Congressional Republicans are weighing imposing such a system in the U.S, which they call a border adjustment tax. But this proposal has met with fierce opposition from American importers, like the retail industry.

None of the high-tariff nations has anywhere near the size of China’s economy or its potential to become a geopolitical rival of the U.S. For what it’s worth, China used to have much higher tariffs, as much as 40 percent in 1992, but these came tumbling down after it entered the World Trade Organization, research firm Capital Economics noted.

Mr. Trump hasn’t said much about the tariff-tax question. Still, it may come up as the administration pushes to sell more stuff in the often-restricted Chinese consumer marketplace.

Nonmonetary barriers. An even knottier issue is the brace of protections that China has erected to hold down an influx of foreign goods and influence. Cracking this Chinese wall will surely be on the agenda at some point in the Trump administration’s negotiations with the Xi government. For instance, Beijing restricts Americans and other outsiders from investing in state-owned businesses. And when foreign companies seek to link up with Chinese partners, the government often requires them to hand over intellectual property.

During the Trump-Xi summit, few expect a harsh blowup. Just the same, given Mr. Trump’s irascible nature, that’s always possible. In March, China’s second-highest official, Premier Li Keqiang, told reporters that China doesn’t want a trade war, in which nations ratchet up tariffs and other barricades, which risks freezing up the global economy as in the 1930s. Treasury Secretary Steven Mnuchin responded the next day that certain trade relationships must be reexamined to render them fairer for U.S. workers.

A trade war would likely mean much higher prices for American consumers on all manner of goods that are imported. Certainly, China could always take steps to retaliate against the U.S. beyond restoring high tariffs. Beijing is the second-largest holder of U.S. Treasury bonds after Japan. China could dump its $1 trillion in U.S. paper, which would send Treasury prices crashing and U.S. interest rates skyrocketing, slamming everyday Americans.

“The best strategy for the U.S. is to prompt China to open up,” said Saruhan Hatipoglu, head of research firm BERI, a geopolitical research firm. “Not increase restrictions for Chinese goods and investment into the U.S.”
Prime Minister of Norway Erna Solberg meets with Premier of the People's Republic of China Li Keqiang in Beijing to announce the end of a diplomatic freeze between the countries and the resumption of free trade negotiations between China and Norway.