The US and China are Preparing to Conclude a Truce
OREANDA-NEWS The US and China seem ready to conclude a truce in the ongoing trade war since the middle of last year. The US President Donald trump announced that he will postpone the introduction of new duties on goods from China scheduled for March 1 and will hold a meeting with Chinese President XI Jinping. On it he hopes to conclude a trade agreement with a Chinese partner.
The US President Donald Trump said in his Twitter account that the United States will postpone the introduction of new trade duties on Chinese goods. In his opinion, both sides have made "significant progress" in trade negotiations. Also, Mr. Trump announced that he plans to meet with Chinese President XI Jinping to sign a new trade agreement.
At the end of September 2018, Washington approved ten percent duties on imports of Chinese goods "worth" about $200 billion. In response, China announced the introduction of duties on $60 billion, bringing the total volume of supplies subject to restrictions to $360 billion (of which $250 billion fall on goods from China).
At the same time earlier, the White House announced its readiness to raise the duty rates on imports of $200 billion to 25%, as well as to cover the remaining import volume with tariffs. After several months of "military action" in December 2018, there was a breakthrough. Both countries agreed to suspend new trade tariffs at the talks. Thus, after a personal meeting between Donald trump and Chinese President XI Jinping at the G20 in early December, the deadline for such actions was postponed to March 2. By that time, the parties should agree on a list of assignments. Later, Mr. Trump said that this period may be slightly postponed if the negotiations are productive.
The report of the official information Agency of China Xinhua notes "significant progress" in such specific issues as technology transfer, intellectual property protection and agriculture. The Agency's sources interpret Mr. Trump's decision as a sign that "both sides have made progress in resolving their devastating trade war."