Delegators of US and China are Approaching Close to End Trade Deal on All Tariffs on Chinese Goods
The US and China negotiators are very close to reach out to a deal to end the trade war. The Trumps administrator is thinking of withdrawing almost entire tariff hike on the Chinese products. The US can only remove the tariff hike if and only if China abides by its promise of protecting intellectual property rights and purchasing American goods, sources informed to Wall Street Journals.
There are important issues that still remain to be settled; meanwhile, the deal is still in discussion. US and China have agreed on a deal that needs Beijing to buy larger American agricultural goods, energy goods and seeks to remove some barriers that do not allow American Companies to operate in China. If China accepts the above condition, then the US is ready to remove its tariff hike on Chinese goods of worth 200 billion dollars out of 250 billion dollars of Chinese imports which are currently under the American charges.
One of the most important sticking points is whether the tariffs should be immediately withdrawn by the US or should the US wait for a little more time so that they can keep an eye over China and see whether it is following its promise, the sources mentioned. The US seeks to go ahead with the threats of tariffs hike to pressurize China and to make sure that China does not back out of the deal and withdraw the taxes completely when Beijing has implemented all the promises made in the agreement.
During the ongoing negotiation, the US had urged China not to bring in World Trade organizations cases in response to the US tariffs which needs to be levied so as to execute the deal, a person familiar with the talks informed.
The Summit Dates between the US President Trump and Chinese President Xi still needs to be finalized, delegates from both the side stated. The Wall Street Journal reporters had earlier mentioned the summit date to be on March 27 so as to end the trade war.
Sources say that China has presented that it will reduce the tariffs on Chemical, US farm, auto and other US products. Few sources also say that China may purchase natural gas of worth 18 billion dollars and also promises to speed up the process of withdrawing foreign ownership limitations on ventures namely Auto industries and to decrease the tariffs on imported vehicles by less than 15 percent, Wall Street Journal reports suggest.
Meanwhile, Trump along with his Economic team members have given a positive signal of reaching out a deal and sealing it. Earlier, Trump had extended the plan of increasing the tariff hike on Chinese goods that was supposed to take place on March 1.
On Friday, citing the delay over the tariff hike, US President had mentioned Beijing to remove all tariffs immediately that are levied against the US agriculture products.
The U.S and Chinese delegates are regularly in touch with each other through phone or video conference to strike the details of the deal.
However, the Trump administration is pressurizing China to approve the enforcement mechanism so that if China fails to keep its promise, then the US can immediately impose the tariffs hike on Chinese goods. Trump was accusing China of illegal trade practices for a year now and also delaying the promise of moving the economic power back to the US.
The Chinese delegates have offered to increase the purchases of American goods by around 1.2 trillion dollars for the next 6 years, a person familiar with the negotiation stated. But, it is still not known how Beijing is going to follow it if the tariffs hike will not be lifted along with other trading barriers, the person added further. In 2017, China had purchased around 130 billion dollars of US goods, reports according to the US figure.