This is the chinese side explanation as to why the talk broke down
Asking a sovereign country to rewrite their law to comply with the wishes of other country is tantamount to colonialism and humiliation No one would do that As I said before least of all Xi the promulgator of "Chinese dream"
No the Chinese does not walk back on their promise because it is still in draft format
CHINA DETAILS DIFFERENCES
Three differences remain between the two countries, according to China’s account of the latest talks.
One of those is over tariffs, Liu said, according to a transcript of the Q&A published by Phoenix, a Hong Kong-based television station that is close to Beijing. China believes that tariffs were the genesis of the trade dispute, and that if both sides wanted to reach an agreement, then all tariffs must be eliminated, Liu said.
The second is about procurement, on which an initial consensus was reached between the leaders of the two countries in Argentina late last year. The two sides now have differing views on the volumes, Liu said. The third is over how balanced the text of the draft agreement should be, he said.
“Every nation has its dignity, so the text ought to be balanced,” Liu said.
Sources told Reuters this week that China had deleted its commitments in the draft agreement that said it would change laws to resolve core complaints of the United States: theft of U.S. intellectual property and trade secrets; forced technology transfers; competition policy; access to financial services; and currency manipulation.
Liu denied the accusations of China’s reneging on promises, saying China thought it was normal to make changes before a final deal. Both sides had differing views on how to phrase it, he said.
Liu said he hoped this issue would be resolved, so it was unnecessary to “over react” to that point.
Similar to Liu, Chinese state media said China would not give in on its core interests.
“China clearly requires that the trade procurement figures should be realistic; the text must be balanced and expressed in terms that are acceptable to the Chinese people and do not undermine the sovereignty and dignity of the country,” the ruling Communist Party’s official People’s Daily said in a commentary on Saturday.
The trade war has weighed on the Chinese economy.
When asked about domestic concerns on how the latest tariffs could further pressure the economy, Liu said he was optimistic about China’s economy in the longer term, adding that it had entered an up-cycle after bottoming out somewhat last year.
He said he believed the Chinese economy would maintain a stable and healthy trend despite some downward pressure, and that China had ample room for fiscal and monetary policy maneuvers.
On Monday, hours after Trump said he intended to raise tariffs, the Chinese central bank cut the amount of reserves that some small and medium-sized banks need to hold, freeing up more funds for lending to cash-strapped firms.