Unraveling the Geneva Trade Battleground: US-China Talks Over Trade Wars' Remains
Ongoing talks between the United States and China regarding custom regulations
In the midst of an international trade war Pandemonium, high-ranking officials from the USA and China have gathered in Geneva for a series of crunch talks. After eight tiresome hours of negotiations, US Treasury Secretary Scott Bessent kept his cards close, declining to comment on the progress. Talks are slated to continue on Sunday.
Background
This high-stakes conversation between Chinese Vice Premier He Lifeng and American Trade and Treasury representatives represents a considerable move in a long-standing trade war saga initiated by President Trump. The parley follows ballooning tariffs and deepening economic discord that has reverberated worldwide.
The Long Game
Both parties are carefully sizing each other up, with China fiercely guarding its interests while scrutinizing US intentions. The talks serve as a critical opportunity for both sides to negotiate and find some common ground to ease tensions.
Tariffs and Their Taxing Toll
At present, tariffs on Chinese goods have been hoisted to lofty peaks, reaching up to 145 percent. However, President Trump has suggested a willingness to ease the financial burden, proposing to reduce tariffs to a more manageable 80 percent. Yet, Trump's administration also emphasizes that China must reciprocate with concessions of its own.
Progress Report
Though a comprehensive accord seems far-off, the sheer fact that negotiations are unfolding represents a glimmer of hope in an otherwise grim trade landscape. President Trump's hints at a tariff reduction are seen as more symbolic than substantive, signifying progress in the relationship, albeit small.
Vice Premier He Lifeng's participation in the discussions is likely more advisory in nature, with the ultimate goal of relaying information back to President Xi Jinping, suggesting that immediate major concessions may not be on the horizon.
Implications beyond Borders
The eventual outcome of these talks will have far-reaching effects on the global economic landscape:
- Stability: Even slight progress could buoy market confidence and potentially lead to positive economic indicators for both countries.
- Trade Deficit: The US has a significant trade deficit with China, which soared to approximately $263 billion last year. Resolving this disparity is seen as crucial.
- Global Trade Dynamics: Resolving trade tensions could foster global economic harmony, respite for countries heavily dependent on trade with the US and China.
- Negotiations Ahead: The success of these talks will pave the way for future disquisitions, focusing on outstanding issues like subsidies and purchase commitments left unresolved in previous agreements.
[1] Warrick, J. W., (2021, July 15) US-China relations plunged into new crisis over Taiwan. The Washington Post. Retrieved from https://www.washingtonpost.com/world/2021/07/15/us-china-relations/
[2] Lardy, N. R. (2021) The US-China trade confrontation: Where and why it matters. The Asia Economic Policy Review. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1111/aepr.12238
- Economy experts in EC countries closely watch the ongoing US-China trade negotiations, hoping for a resolution that could reduce tariffs and boost global economic stability.
- Despite the long hours of talks, the spokeswoman for the US Treasury remained tight-lipped about the progress, only expressing that negotiations will continue the following hour.
- The monetary union of these EC countries keeps a keen eye on the tariff talks, as any resolution could significantly impact the region's business and politics, particularly in sectors that rely on trade with the US and China.
- With initial negotiations now underway, policymakers and business leaders use Whatsapp and other communication platforms to stay updated on the general-news surrounding the trade discussions and the potential implications for their respective industries.
- As the economic and monetary union of the EC closely evaluates the situation, analysts remain wary that swift progress may not materialize as both the US and China are preparing to defend their own interests aggressively during the talks.
