Daily Management Review

The US is ready to start negotiations with China


09/13/2018


Representatives of the White House said that they are ready to go to trade negotiations with China. Information about this appeared after reports of the US preparations for another increase in tariffs for Chinese goods. This caused a negative reaction of investors on the eve of the November midterm elections in Congress.



On Wednesday night, Donald Trump's chief economic adviser, Larry Kudlow, reported that the US is ready to begin a new round of trade talks with China. The official confirmed the information that US Treasury Secretary Steven Mnuchin offered the Chinese to hold a meeting. "We learned that the Chinese government would like to hold talks. After that, our Minister of Finance sent an appropriate invitation to the meeting. I always believed that in most cases it's better to negotiate, therefore in this situation I consider this as a plus," Mr. Kudlow said.

The US said it was ready to start negotiations with China amid information about the willingness of Donald Trump to introduce new tariffs on Chinese goods with a total volume of up to $ 200 billion. The possibility of a new round of the trade war between the US and China has already led to a decline in stock indices - on Wednesday morning, the Asian indices came close to the 14-month low.

Details on the possible trade negotiations between the US and China have not yet been reported. Larry Kudlow says only about the "invitation to the meeting." The US Treasury and the Ministry of Commerce of the PRC do not officially comment on anything. However, according to The Wall Street Journal, referring to sources in the Trump administration, the US decided to negotiate for a number of reasons. First, the US believes that China can take a more flexible position on trade issues. Secondly, the increase in the trade war can cause the political pressure on Donald Trump to grow in America and weaken his position on the eve of the November midterm elections to Congress. According to unofficial information, the invitation from Steven Mnuchin was sent to Vice Premier Liu He, who oversees the issues of financial and economic policy in the government. Negotiations can take place in Washington.

Experts note that even if the new round of negotiations does not lead to a relaxation of trade tension between the US and China, these countries have a chance to agree during the November G20 summit in Argentina. "I do not think that the problem with China will be weakened in the near future," said former US Secretary of Commerce Carlos Gutierrez on Bloomberg. "All this plays a big role on the eve of the November elections, and the president is very concerned not to lose a majority in the Congress and even in the Senate. Therefore, China will be a big part of this entire election campaign. "

source: wsj.com






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