There is no deal yet to end the damaging trade dispute between the US and China. But both sides are working hard to reach that end goal. And as we’ve noted before, US President Donald Trump and Chinese President Xi Jinping have compelling reasons to make it happen.
In fact, both leaders’ political careers and legacies may depend on it.
In another promising sign, the United States and China will continue trade talks in Beijing for an unscheduled third day after running overtime on the second day, wanting to keep up the momentum of negotiations.
US and China gunning for an agreement
US officials have cited signs of progress on pressing US–China relation aspects such as purchasing US farm and energy commodities, and increased access to China’s markets.
Earlier this week, Chinese importers purchased a large amount of US soybeans, making it their third purchase in the last month.
Such purchases, as well as those of oil, liquefied natural gas, and financial services are easier to achieve than a major shift in Chinese industrial policy.
‘Overall the talks have been constructive. Our sense is that there’s good progress on the purchase piece,’ said an anonymous person privy to the talks, as reported by Reuters.
And on Tuesday, CEO of China Beige Book, Leland Miller said on Bloomberg TV:
‘We’re on our way to a deal. There is no question that the Chinese want the deal, they need the deal. Their economy is slowing much more than I think public data is showing right now. There’s many in the White House who would like a longer fight, but for now the president has set the tone, and he says he wants a deal. So we’re on our way.’
Bloomberg reported that Trump’s eagerness stems from his desire to boost the markets, which have struggled amidst the heat of the trade war. The S&P 500 Index has plummeted around 8% since the 90-day truce began.
Similarly, China will be just as insistent on a fair agreement in order to salvage their already-slowing economy. If a dual consensus isn’t reached by the March deadline, Trump’s solid threat of a tariff increase from 10% to 25% is sure to make a big swipe at China’s trading.
Some sure signs of progress
Though the mainstream media doubts any progress, there are many sure signs that the two nations are heading in the right direction.
As RAW Reports, Steven Winberg, Assistant Secretary for Fossil Energy at the US Department of Energy, has told reporters that the talks have gone well thus far, and could confirm ‘we’re continuing tomorrow, yes’.
And a spokeswoman for the US Trade Representative’s office, which leads the US negotiating team, also said talks would continue on Wednesday and ‘a statement will likely follow then’.
As editor-in-chief of China’s state-run Global Times tabloid, Hu Xijin tweeted, the continuation of negotiations ‘sends a signal: The two sides are in serious talks and working hard to solve the disagreements between them’.
The world should be rejoicing, not holding their heads in their hands.
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