The trade talks between the United States and China will continue on Wednesday in Washington. But how far the two contenders are yet to reach an agreement? From the United States is sending contradictory signals.
It is a rollercoaster of emotions – and have been for months: Once an open trade war between the US and China seems inevitable, then again optimistic signals are emitted, often in the Form of a tweet from Donal Trump. The US President had shown in the past week, satisfied with the state of discussions so far: “I think it’s good where we are.” He was convinced that China wool very much like to come to an agreement, he let the world know.
Quite differently, US trade Minister Wilbur Ross, expects no quick agreement in the trade dispute with China sounds. A solution was still “miles away”, Ross entered a few days ago on the euphoria brake. And then a little more conciliatory afterwards, send that there is a good chance that an agreement in the negotiations with the 30-member Chinese Delegation might come about.
In talks Wednesday
The Chinese are under the direction of China’s Vice Premier Liu He on 30. and 31. January, US trade Robert Lighthizer and Minister of Finance Steven Mnuchin officer. For the Thursday a Meeting with Trump is planned.
The U.S. Department of justice, has been short-levied before the beginning of the negotiations, however, charges against the Chinese technology group Huawei and the financial Director Meng Wanzhou, the hope for an agreement diminish.
Still no Deal in sight
Donald Trumps external consultant Michael Pillsbury had previously excluded that during these discussions, a final solution can be achieved. The China expert is regarded as a hawk, when it comes to the US policy toward the middle Kingdom. The Director of the “Center for Chinese Strategy,” at the conservative Hudson Institute, it is said that in the U.S. capital on a very tight line to the President.
China’s Vice Premier Liu He (re.) in June of last year, with the US trade Minister Wilbur Ross
Time is of the essence, because on the fringes of the G20 meeting on 1. December in Buenos Aires, US President, Donald Trump and China’s leader Xi Jinping agreed castle of peace is valid only until March. There is no agreement about a trade agreement is concluded, until then, wants Donald Trump to expand the U.S.-punitive tariffs on virtually all Chinese imported goods to the value of around 500 billion dollars.
US trade deficit at a record high
US President, Donald Trump bother has always been on the huge U.S. deficit in trade in goods with China. He accuses the leadership in Beijing of unfair trade practices, illegal subsidies for Chinese companies and the theft of intellectual property. The deficit in the balance of trade with the middle Kingdom is growing, meanwhile, always more: China’s trade surplus with the U.S. increased to 2017 by a whopping 17 per cent, and amounted in the past year, more than 323 billion dollars (285 billion Euro), according to calculations by the Reuters news Agency, the highest value since 2006.
Despite some drastic punitive tariffs on Chinese Goods, the Chinese exports to the United States in 2018 compared to the year-on-year by 11.3 percent, while imports from the USA increased to China in the same period, only a modest increase of 0.7 percent.
From washing machines to electric car
The first punitive tariffs were imposed by the United States in January 2018 on a Chinese washing machines and solar modules. On import duties of 25 per cent, followed in March on steel, and ten percent on aluminum. With further punitive customs duties in the amount of 25 percent of the USA finished on 15. June 2018, more than a Thousand trade goods, especially technology products – as compensation for damages caused to the U.S. economy by China’s violations of intellectual property rights and forced technology transfer.
These duties focus on product groups in the Chinese Initiative, “Made in China 2025”, including the aircraft, the robots and mechanical vehicles, such as E – and Hybrid cars as well as information and communication technologies.
China struck back a day later and took US to a value of around 50 billion dollars, including agricultural products, cars, and products of the food sector, such as soy beans, seafood or meat.
In September, the United States went to China again and end up screwed, the volume of the punitive duties assigned Were, to a total of around 250 billion dollars, about half of all Chinese imports into the US.
These new duties in the amount of ten per cent should be raised from January 2019 actually to 25 percent. In Buenos Aires, agreed “ceasefire” has so far prevented.
Escalation and relaxation
Trump has already threatened several times to impose more punitive duties on Goods to a value of more than 267 billion dollars. If other countries do not engage in fair trade, it is necessary to prove them with duties, tweeted Trump in September 2018. Then, the total imports of China in the United States would be affected.
Recently there had been a relaxation signals: 1. January 2019 China lowered the import tariff on US cars and car parts from 40 to 15 percent. After the notification of the Ministry of Commerce in Beijing, the scheme is only valid for three months. In addition, China began, in December the Import of soya from the USA again: The first shiploads are expected to arrive during the first quarter of 2019 in Chinese ports.