Squashing the Beef: China and US Provisorially Tackle their Trade War
US-China Reach Temporary Trade Dispute Resolution - U.S. and China strike tentative trade deal in dispute resolution
Here's a lowdown on the latest happenings in the ongoing trade feud between China and the USA. After a series of high-stakes talks, both nations have inked a preliminary agreement in their trade war. The agreement, marked by a levelheaded discussion, fair dealings, and reasonable groundwork, is aimed at implementing the consensus agreed upon by the rulers of both nations, as shared by China's lead trade negotiator, Li Chenggang, via the state-run Xinhua news agency.
Similarly, US Trade Representative Howard Lutnick declared the formation of a framework agreement. The two camps will now present the details reached at the London meeting to their respective bigwigs for the final nod.
Final Say: The Presidents' Verdict on the Trade War
Once Donald Trump and Xi Jinping agree, the efforts will sail through, as per reports. As for the specifics of the deal, the initial details have yet to be disclosed.
Li pronounced the two-day negotiation as "professional," "honest," and "reasonable." Such progress, he believes, bolsters trust between China and the United States, as stated by Xinhua.
Calming the Trade Storm?
This tentative stride could symbolize the cooling of the heated economic battle between the economies that dominate the global trade landscape. The existing 90-day truce in the trade war is still in effect. The negotiations in Geneva saw both parties pledging drastic reductions in tariffs on imports, though specifics were not revealed.
The discussions in London zeroed in on export restrictions. China halted the export of vital rare earths in April, requiring complex application procedures for export licenses. Simultaneously, the US hindered the sale of essential chip design software and aircraft components to China. The parties have yet to pin down when and where they will engage in the next round of talks.
- Trade War
- China
- USA
- Global Economy
- London
- Geneva
- Trade Negotiations
- Preliminary Agreement
- Xinhua
- Howard Lutnick
Tidbits:
- Rare Earth Export Licensing: China is considering reviving its rare earth export licensing system. Nevertheless, the licenses would only be valid for six months[3].
- US Economic Laxity: The US has consented to relax its recent economic restrictions, albeit the precise aspects of such relaxations remain unclear[3].
- Tariff Standstill: The agreement maintains current tariff levels. The US keeps roughly 55% tariffs on certain Chinese imports, while China sustains a 10% tariff on US imports[2]. These conditions are part of a broader settlement aimed at curbing the escalation of tensions from punitive tariffs[1][2].
- Export Quarrels: The talks tackled disputes surrounding mineral and technology exports, straining the agreements made in Geneva. However, concrete outcomes on these issues have yet to be shared[4]. The agreement, according to experts, merely serves as a temporary peace offering and does not address the underlying conflicts, such as China's trade surplus with the US.[1][4] The framework still requires approval from both Trump and Xi Jinping to become official.[1]
- The preliminary agreement in the trade war between China and the USA focuses on implementing policies related to employment and business, aiming to foster fair dealings between the two nations.
- Moving forward, the details of the trade agreement reached in the London meetings, which include discussions on export restrictions and tariffs, will be subject to the final approval of presidents Donald Trump and Xi Jinping, potentially impacting global finance and politics.
