Daily Management Review

US-China To Hold Fresh Trade Negotiations In October


US-China To Hold Fresh Trade Negotiations In October
A statement from the Commerce Ministry of China has said that high-level talks on trade between representatives of China and the United States would be held at the beginning of October in Washington even as there are fears that there can be a global recession because of this protracted trade war among the two largest economies of the world.
According to the statement posted by the Ministry of Commerce on its website, this announcement was preceded by a telephonic conversation earlier in the day and between US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin and the Chinese Vice Premier Liu He. The call also included the central bank governor of China - Yi Gang.
“Both sides agreed that they should work together and take practical actions to create good conditions for consultations,” the ministry said.
Before the beginning of the high level talks in October, preparatory negotiations would be undertaken between trade teams from the two countries some in the middle of this month, said the Chinese ministry statement.  It added that creation of favorable conditions would be attempted as agreed by both the parties in the trade war.
The news of the telephonic conversation with the Chinese representative and Lighthizer and Mnuchin was confirmed by a spokesman for the US Trade Representative's office, who also added that the two sides had agreed upon holding of further talks on trade at the  ministerial-level ”in the coming weeks” in Washington.
On Sunday last week, the a 15 per cent import tariff on Chinese products by the US came into effect even as China implemented it own new retaliatory tariffs on crude oil imported from the US into the country. China also lodged a complaint at the World Trade Organization against the US over the latest round of tariffs. The US president Donald Trump has also said that his administration is planning to enhance the tariffs on $250 billion worth of Chinese imports from 25 per cent, which was already in place, to 30 per cent starting October 1.
And on Tuesday, Trump further warned that if he was elected for a second term as the US president and if there was still not trade agreement with China, he would come down more heavily on Beijing. That statement triggered concerns of a US economic recession because of the protraction of the trade war.
For the Chinese leaders, next month would be a hectic one because they would also be preparing for National Day celebrations scheduled for October 1. According to the Chinese state media, they are also slated to take part in crucial meetings in October to find out ways for improvement of governance and “perfecting” the country's socialist system.