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Customs standoff: Weekly negotiations planned between USA and China - US and China set for talks this week
Top US officials, including Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, are set to negotiate with China this week. Bessent shares a positive approach, expressing anticipation for "productive discussions with the aim of restoring balance to the global economic system." The focus of these talks is to secure the interests of the USA during this economic spat.
The Chinese Ministry of Foreign Affairs confirmed the US-requested negotiations. The Ministry of Commerce, however, issues a stern warning that Beijing will not compromise its core values and will "fight to the end" if needed. In response, Vice Premier He Lifeng, responsible for trade relations with the US, will join the discussion from the Chinese side.
Throughout President Trump's second term, he has championed a hard-hitting trade policy with extra duties added on a plethora of countries. China bears the brunt of these fees: with the recent tariff increases, the Chinese imports now carry a whopping 145% tariff, while Chinese exports to the US face retaliatory tariffs approximately 125%.
These tariffs have left China feeling bullied by the US, with the Ministry of Commerce hinting that the US often "talks one way but acts another." If the US persists with these strong-arm tactics, China will not bend.
Initially, Bessent does not envision a trade agreement during these talks. Instead, he anticipates that discussions will center on a de-escalation which is imperative before any potential agreement can be considered.
Economists view the ongoing tariff battle between the US and China as untenable and unsustainable. Impartially, Bessent says the current tariff rates are akin to an embargo. However, China appears more affected by these consequences.
In a response to the trade war and persistent weak consumer demand, China's central bank announced additional economic measures this Wednesday. These steps include cutting a key interest rate and reducing the reserve requirements for banks to stimulate economic growth and technology innovation.
- USA
- China
- Trade Dispute
- Week
- Donald Trump
- Scott Bessent
- Jamieson Greer
- He Lifeng
- Tariff Dispute
- Global Economy
- Tariff War
- Negotiations
- The upcoming negotiations this week will involve top US officials, including Scott Bessent and Jamieson Greer, trying to resolve the trade dispute with China.
- Bessent, the US Treasury Secretary, is optimistic about the prospect of productive discussions aimed at restoring balance to the global economy.
- Meanwhile, the Chinese Ministry of Commerce has issued a stern warning, suggesting that China will not compromise its core values and is prepared to fight to the end if necessary.
- During President Donald Trump's second term, he has been known for his hard-hitting trade policy, which has resulted in high tariffs on Chinese imports and exports to the US.
- Bessent has stated that he does not expect a trade agreement to be reached during these negotiations, but rather that discussions will focus on de-escalation.
- In light of the ongoing trade war and weak consumer demand, China's central bank has announced additional economic measures this week, including reducing reserve requirements for banks and cutting a key interest rate to stimulate economic growth and technology innovation.
