US-China Trade Talks to Commence on a High Point of No-urge to Compromise

US-China Trade Talks to Commence on a High Point of No-urge to Compromise 

The US-China trade talks that have been on a standstill from quite a few months now, have given rise to tariff wars between both the nations. But the halt seems to be lifting now, as the US and China after the trade war of two months will be meeting this week in Shanghai to resolve their differences, though the expectations of a breakthrough are very less.

The two day summit will commence on July 30 as a result of the peace treaty happened in the side-lined talks at the G20 Summit held at Osaka in Japan between US President Donald Trump and Chinese leader Xi Jinping.

The summit still involves tensions as both the parties have shown mixed signals regarding the summit along with showing a stance to not compromise.

Ahead of the US-China Trade talks, Trump said, “I don’t know if they’re going to make a deal. Maybe they will, maybe they won’t. I don’t care.”

US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer will be meeting the delegation led by China’s economy czar, Vice Premier Liu He, Tuesday and Wednesday in Shanghai.

Amidst the trade talks, the Asia Pacific stocks market took a dip on Monday, even though the stocks of Chinese market saw a mixed day. While the shares of the Shanghai composite slipped by 0.12% and closed at 2,941.01, the Shenzhen component and Shenzhen composite were fractionally higher at 9,354.28 and 1,574.95 respectively.

Chinese state media Xinhua News Agency on Sunday in regards with the upcoming US-China trade talks said that China acquired millions of tonnes of Soyabeans from the United States, and it is of notion that the Chinese companies will continue to look for the American agricultural products including soybean, cotton, pork, sorghum, wheat, corn and dairy.

The People’s Daily newspaper termed this move as a “concrete goodwill” to administer the agreement between Trump and Xi during the G20 Summit at Osaka in Japan.

Ahead of the upcoming summit, China has three main demands which comprise of immediate removal of all existing tariffs, a balanced agreement, and realistic targets for additional Chinese purchases of American products.

Just like China, US also has some demands ahead of the summit from their counterparts and it includes structural reforms to China’s economy, greater protection of intellectual property rights and a more balanced trading relationship.

While the trade war between the US and China still appears to be nowhere near an end, a start to resolve the conflict is certainly welcoming. Since both the parties do not have an urge for compromise, it will be interesting to see how the upcoming US-China trade talks at Shanghai turn out.

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