Paulson sees missed opportunity for both US and China in trade dispute

Paulson sees missed opportunity for both US and China in trade dispute

Former Treasury Secretary Henry Paulson said Sunday that trade negotiations between the U.S. and China seemingly derailing this week is a "missed opportunity for both countries."

“This is a deal that can be very good for the United States and China, the Trump administration has been working very hard to do something which I think would make a big difference for American workers, for the American people, in terms of getting more balanced trade, in terms of protecting IPR, in terms of breaking down some big structural barriers to competition," he said on CBS's "Face the Nation."

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“China’s got plenty of problems themselves," Paulson added. "They have an inefficient financial system, inefficient state-owned enterprises, massive misallocations of capital.”

Trade negotiations between the two superpowers seemed to be nearing a conclusion until President TrumpDonald John TrumpFeinstein, Iranian foreign minister had dinner amid tensions: report The Hill's Morning Report - Trump says no legislation until Dems end probes Harris readies a Phase 2 as she seeks to rejuvenate campaign MORE raised tariffs from 10 percent to 25 percent on $200 billion worth of Chinese imports on Friday and talks broke down.

Chinese negotiators reportedly tried to reverse their vows to address issues like theft of trade secrets and intellectual property.

With Trump's new tariffs in place, some experts have expressed worries about Chinese retaliation, but Paulson said any response would be limited.

“They clearly want a deal and need a deal, as does the United States. No one wins a trade war, so I’m expecting a fairly restrained response," he told CBS.