Massive businesses felt the consequences of the trade war between the United States and China that lasts for nearly a year, and for that, two of the world’s most powerful countries are preparing to restart the trade talks later this week after they were abandoned for two whole months as little progress has been made between them during the past talks.
President Donald Trump said that he was going to suspend a new round of tariffs worth $300 billion of imported Chinese goods while both countries prepare to resume the dialogue after he met Chinese President Xi Jinping in Osaka, Japan at the G20 summit, saying that China would restart large purchases of U.S. agricultural commodities, and the United States would ease some export restrictions on Chinese telecom equipment giant Huawei Technologies.
According to one U.S. official, the discussions from last week were expected to resume with a phone call between the U.S. Trade Representative Robert Lighthizer, Chinese Vice Premier Liu He and Treasury Secretary Steven Mnuchin.
The United States is demanding that China make sweeping policy changes to better protect American intellectual property, end the forced transfer and theft of trade secrets and curb massive state industrial subsidies. At stake, U.S. officials say, is a dominance of the high-tech industries of the future, from artificial intelligence to aerospace, Reuters reports.
Derek Scissors, a China expert at the American Enterprise Institute said: ‘’We’ve had a change in atmospherics. While this is great for markets, the administration has not said one specific thing about how we’re unstuck.”
He also said that both sides got what they wanted out of the summit which is a lowering of the temperature and the avoidance of new tariffs that would have been painful for both sides.
‘’The pressure for one side to give into the other is diffused right now. I expect this to drag out for months,’’ added Scissors.