A process that was started before Donald Trump became the president of the United States and one that was discontinued by his administration – semi-annual talks with China, will again be initiated, the two countries have agreed. The talks were started with the aim of discussing the resolving economic disputes between the two countries. It was discontinued because of the trade war that erupted between the two countries under the presidency of Trump.
According to reports quoting US government sources with knowledge of the deliberations, the two countries plans to announce the resumption of the U.S. China Comprehensive Economic Dialogue on January 15 when the two countries will also sing the so called phase on e of the trade deal between them.
The Wall Street Journal first reported the resumption of the meetings.
This mechanism of talks allows both the countries to voice their issues over trade on a platform which is steady and where high level deliberation can be held between the two largest economies of the world. These negotiations are separate from the negotiations between the two countries over the trade deal.
U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are likely to lead the negotiation sessions.
It has been well over a year that the two countries have been embroiled in a tit-for-tat trade war with both the countries imposing tariffs on the import of each other’s goods worth billions of dollars. This trade war has upended global supply chains, reduced business confidence and threatened to slowdown global growth.
With the growth of China’s economy and the expansion of exports from China to the United States during the early 2000s, this semi-annual talks known as the Strategic Economic Dialogue was initiated under the former President George W. Bush to provide a platform for the management of the growing array of issues between the two largest economies of the world.
President Barack Obama, preceding Trump, also continued with the mechanism during his two times tenure as president. Even Donald Trump initially allowed this mechanism to continue till the beginning of the trade war. The first round of what the Trump administration renamed the Comprehensive Economic Dialogue was held in July, 2017.
But as the Trump administration moved towards a more confrontational approach to China that relied on the use of tariffs to pressure the country into economic concessions, these regular sessions were abandoned by the Trump administration, which were also described as being sprawling affairs but which were heavy on process and light on tangible outcomes.
(Adapted from Reuters.com)