U.S. & China Haggle Over Issues in Trade War
Top Chinese and U.S. trade negotiators haggled on Tuesdays over the final details of the set of agreements that are aimed at ending the ongoing trade war between the two countries. With just one week left before the imposed deadline, both sides are negotiating to finalize a deal as soon as possible.
On Wednesday, Reuters reported that both the sides had started sketching out an agreement on drafting language and structural issues for six memorandums of understanding on proposed reforms.
In case both the sides fail to reach an agreement by the imposed deadline on March 1st, the U.S. tariffs on Chinese imports worth $200 billion is set to rise from 10 percent to 25 percent. The import tariff issues between the world’s two largest economies have disrupted international trade as well as slowed down the global economy since the last seven months.
Negotiators have been struggling this week in order to overcome the differences put forward by specific language to address the demand for structural changes in China’s economy by the U.S. The issues also include a mechanism to make sure that China complies with any agreements.
According to an industry source, it is not surprising that this week has been challenging. After putting together outlines, it has become more challenging to fill out the remaining details. On Thursday evening, the Chinese officials declined to answer any questions as they were leaving the U.S. Trade Representative’s office after more than nine hours of negotiations. The negotiations began with a photo opportunity where Chinese Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer faced each other in the Eisenhower Executive Office Building.
The U.S. President Donald Trump will be meeting with Chinese Vice Premier Liu He, at the Oval Office on Friday. The two had already met at the end of the talks in Washington during Liu’s last visit. U.S. President Donald Trump has hinted at an extension in the March 1st deadline if the agreement appears to be closed.
According to sources familiar with the negotiations, the memorandum will cover cyber theft, forced technology transfer, intellectual property rights, currency, service, non-tariff barriers, and agriculture.
Both the sides remain far apart with demands made by the Trump administration for the Chinese government to put an end to practices on issues that led to levying duties on imports from China in the first place. Chinese President Xi Jinping will have to take the difficult path of structural economic reforms in order to meet U.S. demands.