Daily Management Review

Trade Talks Between US And China To Continue Despite New Tariffs


Trade Talks Between US And China To Continue Despite New Tariffs
Even as the United States and China point tariff guns at each other, the two parties have agreed to continue their talks on trade according to the Chinese government.
US president Donald Trump said he thought most recent negotiation round in Beijing would be successful.
Earlier however, the ongoing trade war between two parties was ramped up with China announcing the details of the additional and new tariffs that it would be imposing on imported US products into the country after the increase of tariffs on $200 billion worth of Chinese imports into the US by the Trump administration last week.  
Starting next month, there are plans to hold a public hearing about the potential for imposition of up to 25% tariffs on another $300 billion of Chinese products imported into the US, said that country’s Trade Representative's office. The office said that the list would include mobile phones and laptops but would exclude pharmaceuticals.
Since last week, there has been some significant sell-off on equities markets globally as investors were troubled by the increased possibility of an impact on the global economy because of a potential for a fiercer, more protracted trade war between the US and China.
"My understanding is that China and the United States have agreed to continue pursuing relevant discussions. As for how they are pursued, I think that hinges upon further consultations between the two sides," Chinese Foreign Ministry spokesman Geng Shuang told a daily news briefing on Tuesday. He however added that China will not be bullied.
"We hope that the US side does not misjudge the situation and not underestimate China's determination and will to safeguard its interests," he said.
According to reports last week, the trade negotiations between the two countries reached an impasse after China reportedly went back on its pledge to codify in writing in the agreement about the change in its laws for enactment of new policies on issues from intellectual property protection to forced technology transfers, which were among the main demands from the Trump administration.
While claiming that China has remained calm in the face of pressure, Geng said that his country had exhibited its commitment to arriving at a deal by sending a high level trade delegation for talks to Washington last week even after the increasing of tariffs by the Trump government.
According to a commentary published in the People's Daily, the official mouth piece of the ruling Communist Party of China, the huge trade deficit the US runs is not because of any act of China and that the Chinese market is hugely profitable for the US corporate.
He would talk to Xi at a G20 summit in late June, Trump said.
"Maybe something will happen," Trump said in remarks at the White House on Monday. "We're going to be meeting, as you know, at the G20 in Japan and that'll be, I think, probably a very fruitful meeting."
Whether the talks between a US trade delegation and its Chinese counterparts were successful would become clear in "three or four weeks", Trump later said while speaking at a dinner gathering at the White House. "I have a feeling it's going to be very successful," he said