Last updated on February 18th, 2019
The US-China war has been reflecting a little optimism lately, where the trade talks have been going smooth according to the US officials. While the progress seems to be going good, the US President Donald Trump is wishing to see a bit more to make things a little better for China.
In a statement on Tuesday, Trump expressed the possibility of extending the March 1 deadline to strike a ‘fair deal’ with Beijing, if the progress will be as per his expectations. The statement contradicted the statement of the US officials, who previously stated March 1 a hard deadline to reach a deal to avert further tariffs.
This week, US and Chinese officials will convene to hold high-level talks, in an attempt to halt the baleful trade war. The feud between the two countries created circumstances, where both of them imposed duties on billions of dollars’ worth of each other’s goods.
While the US has imposed duties on $250 billion (£193 billion) worth of Chinese goods, Beijing retaliated by imposing tariffs on $110 billion worth of US products.
As per the reports, deputy-level talks have already begun in Beijing this week. Moreover, the high-level discussions are due to begin on Thursday, while both sides strive to reach a conclusion before the March 1 deadline. The discussions will be held under headship of the US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He.
At the White House, Trump told the reporters, “If we’re close to a deal where we think we can make a real deal and it’s going to get done, I could see myself letting that slide for a little while.”
“But generally speaking, I’m not inclined to do that,” he added.
Both the US and China had agreed to hold new tariffs for 90 days to allow for talks, in December.
While the US-China trade war seems to be progressing smoothly, a trivial threat still remains. The US has stated that if the two sides don’t reach a deal by March 1, it will increase tariff rates on $200 billion worth of Chinese imports from 10 per cent to 25 per cent. President Trump has also threatened of further tariffs on an additional $267 billion worth of Chinese products.
Even though the issue looks like easing, it still remains tangled from deep within, where Washington is pushing Beijing to make changes to its economic policies. The United States believes that these policies unfairly favour domestic companies through subsidies and other support.
The US has accused the Beijing government of supporting technology theft as part of its broader development strategy. Meanwhile, China believes that the US is using the trade war to contain the country’s rise.
As the situation is getting better, the uncertainty of the US-China war to end still remains.