The original 90 days truce for no new tariffs is long over. Negotiation teams have been working on a reprive since the 1st of March. Now leaders of both country agrees that the trade deal between China and the United States is within reach.
It has been five months since the talks aiming to end the trade war between China and the US have started. The current state of affairs is either ’substantial progress’ (Xi Jinping) or ’agreement on some of the toughest points’ (Donald Trump).
President Donald Trump met vice premier Liu He before making the encouraging statement that the US and China had agreed on ’a lot of the most difficult points’. Trump said that in a case of a done deal agreement a summit with the Xi Jinping would be held.
Although they didn’t mention specifics, the core issues behind the talks are the questions of intellectual property, Chinese state subsidies to export companies and the World’s largest trade deficit.
Trade with China on before trade-war terms would to tough for the US – the president underlined. Yet there are ’still ways to go’. Trump also remarked that questions of tariff rollback and deal enforcement were still on the table.
US trade representative Robet Lighthizer used a more cautious tone calling the unresolved questions as major issues. For some observers, like BBC’s own China correspondent Robin Brant, these signs of deal are conflicting. Brant reminds us that deal enforcement is a crucial issue, and the distance is still significant between the sides.
A failure of these talks would mean double tariffs and probable further duties on Chinese imports. China would retailate accordingly.