September 29, 2020

Us & China Conduct Deputy Level Trade Talks Before High-Level Negotiations In October

The US-China trade war is entering into a negotiations phase, scheduled in the upcoming month of October. Before the high-level talks in October, the deputy trade negotiators from both sides are set to meet in the United States Trade Representatives (USTR) office on Thursday and Friday. Vice Finance Minister Liao Min would lead the Chinese delegation consisting of 30 members and the US side is being led by Deputy Head of USTR Jeffrey Gerrish. This early meeting would lay down the frame work for the upcoming high level meetings in October 2019.

The negotiations would be focused on agricultural products of the US and protection of US intellectual and technological property. The talks would be focusing greatly on the agricultural sector of the US, which has been the main target of the Chinese tariffs and has battered the local US farmers. Trump has a great interest in solving the agricultural products issue as farmers from one of his main constituency are among the most affected segment from the trade war. Trump had said earlier that China made commitments to buy agricultural products from the US in the G20 Summit, but those commitments failed to materialize. Trump imposed more tariffs on billions of dollars of Chinese goods after the Chinese refused to buy Agricultural products. The Chinese deny that any such commitments were made.

The current negotiation on Thursday and Friday would also focus on the currency market. The US Treasury Secretary Steven Mnuchin has called China a currency manipulator and accused China of artificially dropping China’s currency by seven points against the US dollar to gain benefit in trade.

China had recently revised some tariffs imposed on US goods, signaling that they wanted to reach a solution through dialogue, Trump replied to this by delaying the imposition of tariffs on another $250 billion worth of Chinese goods, scheduled on 1st October to mid-October. Experts say that the upcoming talks in October would not be that much effective and the meetings would not solve the core differences between the two sides and the trade war would continue in the future as well. However, Trump and other senior US politicians like Kevin Brady were optimistic regarding the negotiations.

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