Despite the truce struck between the world's two largest economies to ease trade tensions and resume negotiations, there is no guarantee that China and the United States will strike a deal anytime soon. Senior level negotiators have resumed their discussions - U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan with the goal of ironing out the remaining differences between the two sides.
Beijing is asking that Washington end the tariffs on $250 billion of Chinese imports, although President Trump has said that the penalties won't be lifted until China agrees to a deal. Washington, for its part, wants Beijing to address intellectual property theft and buy more U.S. goods. In a recent Tweet, President Trump said China was 'letting [the U.S.] down' by not buying enough agricultural produce. Some experts, like Columbia University Professor Jeffrey Sachs, are hoping for a long-term solution. Professor Sachs advocates for a "return to a rule-based WTO trading system" in his latest piece for China-US Focus.
The global economy continues to suffer from the ongoing trade dispute, and forecasts continue to be grim. Chinese imports from the U.S. have dropped 31.4% from 2018, and U.S. imports from China are down by 7.8%. China's trade surplus with the U.S. grew by 3%.
Prepared by China-US Focus editorial teams in Hong Kong and New York, this weekly newsletter offers you snap shots of latest trends and developments emerging from China every week, while adding a dose of historical perspective.