US – China hopes for Currency deal and tariff delay as trade talks resume
Top Chinese negotiator to meet with Trump
The US-China trade talks at cabinet-level began Thursday, with President Donald Trump revealing that he will sit down with top Chinese negotiator Liu He on Friday.
“We’re doing very well, we’re doing one tomorrow, I’m meeting with the vice-premier at the White House, and I think it’s going well,” said Trump to the reporters at the south lawn of the White House on the evening.
“So we had a very, very good deal with China,” he said.
In the run-up to talks, Liu said that the Chinese delegation “came to the negotiations with utmost sincerity” and that “was willing to carry out a serious dialogue with the U.S. side on issues of mutual interest, including trade balance, market access and investor security,” the official Xinhua News Agency reported.
With less than a week until higher US tariffs reached Chinese goods, USA. Trade Representative Robert Lighthizer and Secretary of the Treasury Steve Mnuchin welcomed Liu here Thursday morning at the USTR office.
The agenda for the negotiations involves structural reforms of the Chinese economy, such as the manipulation of their currency.
Yuan sales have increased as China’s economic growth slows. Some in the Trump administration claims that Peking allows the currency to fall to alleviate the tariff effect and help its exporters. The administration has classified China as a currency manipulator for the first time in 25 years and has called for an end to the yuan’s decline by involving institutions like the IMF. The Chinese side has supposedly made reform proposals to address this problem, for example, to increase the transparency of foreign exchange activity.
The US International Affairs Chamber, Myron Brilliant, said that he felt “there’s even the possibility of a currency deal this week.” “I think that could lead to a decision by the U.S. government to not bring forth a tariff rate hike on Oct. 15,” Brilliant said in a teleconference after Liu’s meeting with the Senior Offi Chamber on Wednesday.
China’s imports of U.S. agricultural goods and measures to liberalise China’s financial and other markets and protect intellectual property were also discussed.
The Chinese side suggested extending purchases of American farm products such as soybeans in the two-day sub-level talks to Wednesday. In 2018, US agricultural exports to China fell 53%, weakening Trump’s US support base. Midwest. Midwest. The change is excellent for Beijing, too, as rising prices of imported soybeans in China have raised food prices.
The Dow Jones Industrial Average received over 250 points on Thursday morning for the two-day trade talks. After South China Morning Post announced after Wednesday’s market closing that after just a day of negotiations the Chinese delegation tried to return to Beijing due to the lack of success, Dow futures had fallen more than 300 points.
The Trump administration would increase the punitive tariffs on Chinese goods by $250 billion to 30%, compared to 25% by 15 October and further escalate the trade war.
While the US and China face the risk of slowing economic growth, the Trump administration seems to remain steadfast.
Earlier this week, Washington increased pressure on Peking in implementing trade and visa limits to its treatment of the Chinese Muslim Uighur minority. China has retreated from what it calls domestic interference.