US. President Donald Trump and Chinese leader Xi Jinping have paused the months-long escalation of their ongoing trade show. The White House announced a ceasefire after a two-hour dinner meeting on Saturday between Trump and Xi, held next to the G20 summit in Argentina.
The United States has agreed to delay a planned increase of $ 200 billion in Chinese imports by 90 days, so the two nations have time to iron out their trade differences – or at least try to do it, White House said.
Trump has already introduced $ 250 billion of import taxes in Chinese products ̵
1; 25 percent of $ 50 billion and 10 percent of the remaining $ 200 billion. However, he had threatened to raise tariffs of $ 200 billion to 25 percent from January 1.
White House press secretary Sarah Sanders said Trump and Xi had agreed to launch immediate trade negotiations on the clear points between the two forces, including forced transfer and IPR protection. The planned tariff increase would be paused in the meantime, but she stressed that tariffs will be raised to 25 percent at the end of 90 days if “the parties can not reach an agreement”.
Sanders added that China had agreed to make several concessions as part of the trade event, including a promise to buy a “not yet agreed but very large” amount of agricultural, industrial and other products from the United States
China also agreed to reconsider the approval of US chipmaker Qualcomm’s takeover of Dutch-based rival NXP – an agreement that the Chinese government blocked earlier this year – and to label the synthetic opioid phenol anchored a controlled substance, a move that the United States has driven China to do for years . According to a previous Bloomberg report, most fentanyl is produced in the US in China.
Trump described the meeting with Xi as “amazing and productive.”
“It’s an incredible deal , “said the president aboard the Air Force One, according to AP. “What I’m doing is holding back on the tariffs. China will open, China will get rid of tariffs. China will buy huge amounts of products from us.”
Chinese officials also responded positively to the conversation. Wang Yi, China’s highest diplomat, told reporters that the negotiations had been conducted in a “friendly and sincere atmosphere”.
“The two presidents agreed that the two sides can and must get the bilateral relations right,” said Wang, per Reuters. “The discussion on economic and trade issues was very positive and constructive. The two heads of state reached agreement to stop the mutual increase of new tariffs.”
Experts noted that trade weapons do not mark an end to the trade dispute between the two nations but rather a suspension of its escalation. Nevertheless, worry about the potential global damage that further tariff increases could arise – at least temporarily – convinced.
“It’s good that the two sides took advantage of the ability to call a security guard,” Andy Rothman, an investment strategy at Matthews Asia, specializing in China, told AP. “The two sides seem to have had a big change of heart to move from confrontation to engagement. This changes the tone and direction of the bilateral conversation.”