China Confident About A Trade Agreement With The U.S.

China is confident that it would be able to come to an agreement with the United States on trade, said the second largest economy in the world on Wednesday. This was a sentiment similar to what US president Donald Trump has expressed the day after he issued warning of more tariffs on Chinese goods if there was no agreement on trade.

Ever since the meeting between Trump and Chinese leader Xi Jinping in Argentina where a temporary truce on trade was reached between the two sides, there had been a silence on the part of Beijing until the statement issued by China’s Commerce Ministry on Wednesday.

According to the brief statement from the statement, because both sides “actively promote the work of negotiations within 90 days in accordance with a clear timetable and road map”, therefore China would react to quickly impose specific clauses on which both the sides have already agreed.

“We are confident in implementation,” said the Chinese Commerce Ministry and termed the latest bilateral talks to have been “very successful”.

The silence on the part of China over its trade truce with the US was because of the travelling schedule of officials, Trump had explained in a post on Twitter and opined that the efforts of Xi during their weekend meeting was very sincere in ironing out the trade related differences between the two countries.

“Very strong signals being sent by China once they returned home from their long trip, including stops, from Argentina. Not to sound naive or anything, but I believe President Xi meant every word of what he said at our long and hopefully historic meeting. ALL subjects discussed!” Trump wrote on Wednesday.

While warning that the US would only accept a “real deal” with China, Trump had said a day earlier that the US would reconsider imposing of tariffs if the talks failed. He however had expressed hope that solution would be arrived at in the 90 days of truce to the trade war.

“We hope the two working teams from both sides can, based on the consensus reached between the two countries’ leaders, strengthen consultations, and reach a mutually beneficial agreement soon,” Foreign Ministry spokesman Geng Shuang told reporters.

For the better part of the current year, the financial markets and the global economy had been clouded by the threat of further escalation in the trade war between China and the US.

The sporty and somewhat cheerful mood following the meeting between Trump and Xi was however soured by suggestions that it would not be possible to arrive at a trade agreement in the 90 days of trade stand down between the two countries. Markets reacted in the negative because of the lack of clarity and detail in the so called agreement between the two leaders.

According to statements from the White House, in return for the halt of imposition of higher tariffs rates by the US starting January 1, 2019, China has reportedly agree to increase purchase of more American products while the two sides initiate talks and negotiations on trade.

(Adapted form Reuters.com)

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Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Sustainability, Uncategorized

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