Chinese officials said that all trade commitments made to US would be implemented very soon but no details were divulged. The ongoing US-China trade war led to billions of dollars of tariffs being imposed by both nations on each other’s goods. The G20 summit over the weekend resulted in a temporary truce between Trump and Jinping, American and Chinese president respectively. However fear of discrepancy in information from either side is still a matter of concern. Both China and US have agreed to put a stop to imposition of further tariffs for 90 days. Already imposed tariffs were all set to increase by start of 2019 along with imposition of new duties. Beijing had restricted itself from commenting on whatever Trump was tweeting, as some of the information didn’t match that of the White House. Because of the confusion, many are wondering if the trade war will heighten, further worsening the condition of the already hurting industry. People also fear derailment of the world economy.
Many believe that the trade war is just the tip of the iceberg, with bigger problems underlying the current situation. While China has been accused of theft of intellectual property and of ‘unfair’ trade practices creating huge trade deficits by US, the latter has been accused of starting the biggest trade war in economic history. US, since July, imposed tariffs worth $250 billion on Chinese goods, which China responded to by imposing $110 billion of tariffs on American products.
According to the White House, China has agreed to buy a substantial amount of industrial, energy, agricultural and other items from US to lessen the trade gap and begin talks on structural changes to deal with cyber theft and intrusions, forced technology transfer and to ensure protection of intellectual property. Agreement has also been reached on reducing tariffs on American cars exported to China by 40%. Although Trump tweeted that the 90-day truce period was supposed to begin ‘immediately’, China hasn’t mentioned anything about it yet.
Following the summit held in Argentina, Wang Yi, Foreign Minister of China, said that further expansion of US-China economic friction has been prevented. Chinese officials referred to the meeting as a ‘great success’.
Stephen, having a background in the Business sector has recently joined the organization as an Intern. Having the skills to rightfully put the difficult facts and concepts into understandable and simple way has hit him in our team. In spare time, Stephen likes to keep tabs on the events, conferences, meetings of the well-known and budding personalities in the Business sector and put forth his viewpoints and opinions in her blog posts.