US and China resume trade talks
The two nations are negotiating a trade agreement after a contentious 2018.
There may be a thawing in the US-China trade war. After agreeing to have trade talks, the two nations have agreed to meet to negotiate about trade agreements.
China and US hit by trade tariffs
The US imposed $250 billion worth of tariffs on imported Chinese goods in early 2018,and China retaliated with $5 billion of taxes on American goods. However, by December 2018, the nations tried to reach an agreement to put a hold on import taxes for 90 days. With the deadline approaching, the two nations are trying to end their stalemate.
The Chinese economy has suffered as a result of the tariffs with fewer car sales, but the US has also been affected. Apple reported weak first quarter (Q1) guidance, and noted that the trade war had an impact. Chief executive officer (CEO), Tim Cook, blamed sluggish sales of the iPhone on the US trade tariffs and the slowdown in China’s economy. National Public Radio (NPR) reporter, Yuki Noguchi, noted that the tariffs greatly impacted the countries.
‘The disputes between the world's largest economies already led to tariff hikes on a wide range of industrial, manufacturing and agricultural products. Those have had far-reaching impact on companies and markets,’wrote Noguchi.
What may happen in trade talks
Both nations are optimistic that a trade agreement can be reached. A Chinese foreign ministry spokesperson said he believed ‘the good faith, on the basis of mutual respect and equality, to resolve the bilateral trade frictions.’
US President, Donald Trump, said that a solution to the impasse can be found.
'I think China wants to get it resolved. Their economy's not doing well. I think that gives them a great incentive to negotiate,’ said Trump.
While China and the US are hopeful about the trade talks, trade experts like Julian Evans-Pritchard, economist at Capital Economics, is still cautious about the nations ending their trade war. He believes that the two nations are still at odds over the assertion of the US that China is stealing intellectual property.
‘There are concerns about how far apart the two sides still are. The main sticking point is going to be on industrial policy and intellectual property rights,’ said Pritchard.
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