China urges Trump to lift security curbs

President Xi Jinping's negotiators want the US to lower tariffs on imported inputs used by any Chinese factories built in the US, according to people familiar with the matter, who asked not to be identified discussing private deliberations.

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China is pushing the Trump administration to roll back national-security restrictions on Chinese deals in the US, dangling the prospect of a massive investment package as part of a proposal that would upend a decade of policy. In addition, President Xi Jinping's negotiators want the US to lower tariffs on imported inputs used by any Chinese factories built in the US, according to people familiar with the matter, who asked not to be identified discussing private deliberations.

The proposals were raised during trade talks in Madrid last month, the people said. During those meetings, the two sides reached a framework deal to keep Chinese social-media giant TikTok operating in the US, despite national security concerns raised by American lawmakers.

The Chinese floated a figure of $I trillion earlier this year, according to one of the people, but the size of the potential investment being discussed now is unclear. After the Madrid talks, US Trade Representative Jamieson Greer told Fox Business that the two sides had discussed "the investment climate in the United States for Chinese companies." Senior Chinese trade negotiator Li Chenggang told reporters the U.S. had "expressed its willingness to move together with China toward the same goal when it comes to reducing barriers to investment and promoting relevant cooperation on [the] trade and economic front."

Days later, Xi urged President Donald Trump in a phone call to create conditions for "Chinese enterprises to invest" in America. The Chinese proposals are part of a bold set of requests that include pressing the US to change its decades old stance on Taiwan-another red line for Washington. They also represent a shift from trade talks during Trump's first term that focused on purchases of US exports rather than investment in the US, an area subject to national security reviews.