Trade talks are set to resume by the end of the present week, between the United Stated and China. However, it is expected that any conclusion reached by the two nations will only a superficial fix.
As stated by the trade analysts, officials, and executives of both China and the U.S., what started as a trade war has turned into a skirmish of ideas and politics, which are not only limited to additional tariffs.
China’s Communist Party is not expected to change its stance on U.S. demands which ask to alter how the country manages its economy. On the other hand, the U.S. will not go back after how it deemed Chinese firms as a national security concern for Americans.
On the 6th of September, Larry Kudlow, the economic advisor for the White House, stated how the clash between China and the U.S. could possibly take nearly a decade to conclude. An ex-policy advisor for the central bank of China and a former president of the China Society of World Economics, Yu Yongding, stated how China was in no rush to reach an agreement, when speaking to Reuters.
Donald Trump, President of the United States, and Xi Jinping, the General Secretary of the Communist Party of China, may reach an interim deal next month in order to quieten stock markets and reach a political win following this week’s lower-level talks.
A Managing Partner of McLarty Associates (a govt. and policy consultancy), and an ex-U.S. Trade Representative official, Kellie Meiman Hock stated how it is unlikely to reach a deal which manages to address the Chinese reforms hoped for by the U.S. and numerous other countries.
Ever since the collapse of trade negotiations between the two countries in May, both China and the U.S. broke agreements from their sides and exchanged insults.
A fellow at the Center for Strategic and International Studies and an ex senior Commerce Dept. official, William Reinsch said how they were part of this uncomfortable situation. He added how presidents of both the nations had undercut their negotiators, and that no one side could rely on the others’ statements.