U.S. and China to Discuss Trade
CBJ — The United States and China have scheduled face-to-face consultations in January regarding their prickly trade disagreement.
The world’s two biggest economies are at loggerheads over a months-long trade war.
There has always been an incredibly large trade imbalance between the two countries, with China able to import billions of dollars more in goods into the U.S. than what the Americans are able to put on the Chinese markets. Even at that, what is made in America faces additional tax levies that don’t go the other way. The Trump administration has argued that the imbalance has gone on far too long and needs to be addressed.
The U.S. government seems to acknowledge there will still be an imbalance moving forward but that it needs to be narrowed considerably.
U.S. and Chinese officials have spoken by phone in recent weeks, but a meeting next month would be the first in-person talks since U.S. President Donald Trump met his Chinese counterpart, Xi Jinping, in Buenos Aires on December 1.
Trump and Xi agreed to stop escalating tit-for-tat tariffs that have disrupted the flow of hundreds of billions of dollars of goods between the two countries. The leaders also agreed to launch new talks while the United States delayed a planned January 1 tariff increase until March.
In response, China has resumed purchases of U.S. soybeans for the first time in six months, even though hefty tariffs on U.S. cargoes remain in place.
China has also said it will suspend additional tariffs on U.S.-made vehicles and auto parts for three months starting on Jan. 1, adding that it hopes both sides can speed up negotiations to remove all additional tariffs on each other’s goods.
The nasty trade dispute is not helping either country, although it’s become quite evident that China is feeling the strain far more and has shown a willingness to do what is necessary to resolve the crisis.