Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
Driving commercial and political engagement between Asia, the Middle East and Europe
Talks in Washington between US and Chinese officials have resulted in both sides agreeing to delay tariffs, prompting one White House official to say: “We are putting the trade war on hold.”
Treasury Secretary Steve Mnuchin made the comments following the latest negotiations, which he said have led to a new framework for addressing trade imbalances, Reuters reports.
“We are putting the trade war on hold. Right now, we have agreed to put the tariffs on hold while we try to execute the framework,” Mnuchin said.
Earlier in the week, reports suggested that China had offered to reduce its surplus with the US by $200bn – a position that the Chinese Foreign Ministry later scrambled to dismiss.
However, sufficient progress must have been made for the US to postpone the long-threatened tariffs on Chinese imports, which Beijing had in turn promised to reciprocate. A joint statement by both sides confirmed that Beijing would ‘significantly’ increase its purchases of American goods, without unpacking the details, Channel News Asia reported.
Meanwhile, Chinese state-media outlet Xinhua quoted Vice Premier Liu He – who led the Chinese delegation in Washington – as saying: “The two sides have reached a consensus, will not fight a trade war, and will stop increasing tariffs on each other.”
The big questions now relate to the details, and the sectors likely to benefit from any Chinese efforts to cut the trade gap. There are also outstanding questions around other key areas of contention, including Intellectual Property practices and steel dumping.
These are likely to be questions for the Chinese Ambassador to the UK, His Excellency Liu Xiaoming, who will be speaking at Asia House on Monday 21 May on the China-US trade tensions. More information here.
