It is expected that in early January 2019 the U.S. government delegation will visit Beijing to initiate trade truce talks since the presidents of both the countries agreed to put an end to their tariff war. According to Bloomberg, the U.S. delegation to China would be headed by Deputy US Trade Representative Jeffrey Gerrish for talks during the week of January 7. Both the nations would work to ease trade tensions by March 1.
It is believed that Washington and Beijing have exchanged more than $300 billion in total on counter tariffs in the two-way trade conflict which eventually lead to a plunge in the global stock market.
The U.S. claims that unfair Chinese trade practices lead to initiation of trade war from U.S.’ end, though similar concerns were also shared by the European Union, Japan and others.
The talks about the truce began after U.S. President Donald Trump met with Chinese leader Xi Jinping at a G20 summit in Buenos Aires on December 1. They agreed to temporarily freeze the retaliation tariffs for 90 days.Following the news, most global indices rose on the first trading day of December, with some even proclaiming the end of the trade dispute. It is good to be optimistic but too early to reach any conclusion as U.S. has also warned that if no deal is made at the end of 90 days, then it could continue with the 25% tariff increase. Though the investment community took to the progress in talks with open arms, the entire scenario has made global investors very nervous.
On Sunday Beijing’s commerce ministry shared that China and the US “made new progress” on the issues of trade balance and intellectual property over a telephonic conversation between officials from the two countries.
On December 14 Beijing announced that from January 1 onwards it would suspend extra tariffs levied on cars and auto parts manufactured in US. Talks also produced reports that the country would resume purchasing soybeans from American farmers and ease investment rules for US-based corporations.