Trade war resolution on Trump's to-do list

End in Sight for US-China Trade War

The two day long negotiations between Chinese and US trade delegates will wrap up today.

While the mid-level negotiations won’t lead to an immediate new deal, encouraging signals from both sides confirm what The Australian Tribune has been forecasting since September.

US President Donald Trump and Chinese President Xi Jinping both have tremendous incentives to reach an agreement. And it’s looking increasingly likely the two sides will sign a ‘great new deal’ inside the next two months.

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China needs a resolution ASAP

US Commerce Secretary Wilbur Ross predicts there is a ‘very good chance’ that an agreement will be reached amongst China and the US that ‘we can live with’.

In his interview with CNBC on Monday, Ross said talks were taking place with appropriately-assigned staff to figure out how that administration should proceed.

He also pointed out that it’s the immediate trade issues that are top priority during these discussions, in accordance to the 90-day hold off of Trump’s threatened tariff increase.

Issues involving enforcement and structural reforms, like intellectual property rights and market access, are a much more difficult area of negotiations that will no doubt take longer to resolve.

But Ross is confident such a resolution will ultimately occur:

I think there’s a very good chance that we will get a reasonable settlement that China can live with, that we can live with and that addresses all of the key issues.’

And the man all about the figures, Trump, also sees a good round of negotiation approaching, thanks to China’s slowing economy. He told the White House:

I think China wants to get it resolved. Their economy’s not doing well. I think that gives them a great incentive to negotiate.’

It seems it’s even given China incentive to meet with the US once again.

A new round of negotiations taking place

Chinese and US officials met in Beijing at the beginning of this week to begin such negotiations, in the first face-to-face meeting between the two nations since the 90-day truce was announced. As RAW reports, the two sides insisted on ‘positive and constructive’ discussion during the meeting, says Foreign Ministry spokesman Lu Kang.

He went on to say:

From the beginning we have believed that China-US trade friction is not a positive situation for either country or the world economy. China has the good faith, on the basis of mutual respect and equality, to resolve the bilateral trade frictions.

Trump also reassured the public that ‘the China talks are going very well’.

And Wei Jianguo, former Chinese vice commerce minister, is most optimistic about this latest round of talks.

These talks will have a positive outcome because both sides are trying to deal with the issue in an active and practical manner. I’m not saying there could be positive results; I think there definitely will be.

The trade talks are set to continue into today, and as such, few details of the meeting have been revealed. Trump opposers have naturally jumped down the throat of this point, suggesting it means no worthwhile progress is being made in these meetings.

But RAW also reports that Chinese Vice Premier Liu He, who has led trade negotiations with the US and is a top economic adviser to Xi Jinping, was present at these meetings. That can only be a promising sign.

We told you so.

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The Australian Tribune Editorial

The Australian Tribune Editorial

The Australian Tribune is an unorthodox news service. Your Australian Tribune editorial team deliver the unfiltered stories that could impact your daily life — political and economic stories you’re unlikely to get anywhere else. And we’re not afraid to step on some toes to do it. We are honest, conservative and never dull. We are an independent service, meaning we don’t answer to shareholders or outside advertisers. This helps avoid conflicts of interest that inhibit mainstream sources, which keeps our voice independent. The Australian Tribune is owned and operated by Port Phillip Publishing.
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