Negotiations Commence To End US-China Trade Dispute 🤝
An agreement on the horizon
Since Monday, the US and China have been negotiating terms to an agreement that could end the six-month trade dispute. According to the US Commerce Secretary, the nations are likely to reach “reasonable” trade settlement. However, structural issues, like market access and protection of intellectual property, are sticking points.
Some progress made
These talks follow a meeting between US President Donald Trump and Chinese President Xi Jinping at last month’s G20 Buenos Aires Summit, where the two leaders agreed to a 90-day trade truce. Faced with a slowing economy, China has begun to address US trade demands by easing retaliatory tariffs on American-made cars and resuming purchases of American soybeans.
Washington Post: Team Trump should be careful what it wishes for on China
Articles advising caution refrain from labeling negotiations as an early US victory. They refute Trump’s claims that the US has leverage over China as a result of the latter’s sluggish growth. These articles point out China’s plan to unveil significant economic stimulus and US forecasts of slow growth in 2019, anticipating that the success of these economic measures could shift the balance of trade in China’s favor.
Wall Street Journal: U.S., China Negotiators Narrow Differences on Trade
Articles acknowledging progress are optimistic about US advancements in trade talks. They assert that China’s concessions to US trade demands signal a promising deceleration to the trade war. These articles also cite the Trump administration’s optimistic remarks. While they emphasize that negotiations have a long way to go, they are optimistic about these preliminary discussions.
Does the US really have leverage over China?
Maybe not. While US-China trade negotiations occur, a political player made a surprise appearance in China on Tuesday: Kim Jong Un. Kim’s arrival may be a indication that China is looking to push the US to end the trade dispute; failing to do so may complicate the Trump administration’s plan for a follow-up summit with Kim Jong Un, addressing denuclearization.
"Deal with it"
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