U.S. and Chinese trade talk leaders are now ready for another round of negotiations, according to China’s Ministry of Commerce.
China’s top trade negotiator Liu He, U.S. trade representative Robert Lighthizer, and Steven Mnuchin held a morning phone call regarding a renegotiation. People’s Bank of China Governor Yi Gang and Ning Jizhe, vice chairman of China’s top economic planning body, the National Development and Reform Commission, also joined the call, according to a report.
Both sides will meet in Washington D.C. to iron out the two countries’ complicated trade relations. But as a preparation, consultations will be made in mid-September for the meeting, the Chinese Commerce Ministry said. Preparations will be through deputy-level meetings to establish a secure platform for more significant progress.
In a surprising turnaround, both sides have agreed to cooperate and champion practical actions. Both China and the U.S. have promised to create favorable conditions for this crucial negotiation.
With practical actions, it might include the lifting of costly tariffs with each other. For many months, the world’s two largest economies have repeatedly slapped one another with tariffs – a tit-for-tat, as many have described.
Effect of Trade War Globally
The trade war has sent jitters all over the global market and fears that it would escalate into something bigger. The trade war even caused U.S. companies to pull out of China due to unfavorable conditions.
The meeting, as everyone hopes, can lay the ground for better negotiations. Both sides know that the continuous imposing of tariffs will send ripples of consequence in the future. These would not only affect their giant economies but the world’s economy as well.
In today’s highly connected world, any economic consequence cannot be isolated. These new negotiations between the two superpowers is a welcome move that could prevent any economic danger in the future.