NewsClick

NewsClick
  • हिन्दी
  • Politics
  • Economy
  • Covid-19
  • Science
  • Culture
  • India
  • International
  • Sports
  • Articles
  • Videos
search
menu

INTERACTIVE ELECTION MAPS

image/svg+xml
  • All Articles
  • Newsclick Articles
  • All Videos
  • Newsclick Videos
  • हिन्दी
  • Politics
  • Economy
  • Science
  • Culture
  • India
  • Sports
  • International
  • Africa
  • Latin America
  • Palestine
  • Nepal
  • Pakistan
  • Sri Lanka
  • US
  • West Asia
About us
Subscribe
Follow us Facebook - Newsclick Twitter - Newsclick RSS - Newsclick
close menu
×
For latest updates on nCOVID-19 around the world visit our INTERACTIVE COVID MAP
Politics
International

US and China Arrive at Truce in Trade War but Concerns Remain

US president Donald Trump and Chinese vice-premier Liu He reached an agreement on October 11 whereby the former agreed to not implement tariffs while the latter promised to increase agricultural imports
Peoples Dispatch
15 Oct 2019
US and China Arrive at Truce

The handshake agreement on October 11 gives breathing room to both countries as negotiations continue. Photo: Bloomberg

The administration of US president Donald Trump has agreed to a compromise with the Chinese government in the ongoing trade war, claiming that it wants to keep the negotiations alive. On Friday, October 11, in what is being called the “handshake agreement”, the US agreed in principle to not implement the first major phase of exorbitant tariffs on several Chinese goods that was due to begin on Tuesday. In return, China agreed to exponentially increase its imports of US agricultural goods – which had halved over the past year – to USD 50 billion, even before the negotiations are complete.

This ‘truce’ in the prolonged trade disputes, often dubbed as a trade war, came after nearly two days of negotiations by Trump with Chinese vice-premier Liu He. The first phase of tariffs announced more than a year ago would have affected close to USD 250 billion worth of imports from China.

Earlier this year, the Trump administration had revised the tariff on these goods from 10% to 25%. Consequently by the end of May 2019, the US had imposed tariffs on USD 500 billion worth of goods out of a total of USD 539 billion of imports from China.

China, in response, brought USD 110 billion worth of goods under stringent tariffs. It imports USD 120 billion worth of goods from the US. China also significantly cut down agricultural imports from the US from an estimated USD 24 billion to USD 9 billion. Some of the key products China imports are soy and pigs.

All of these tariffs are yet to be implemented. Nevertheless, trade relations have been greatly affected as both sides have targeted major sectors of the other through blacklisting of products and companies and other indirect means.

The two-day negotiations that ended on Friday were aimed at resuming trade negotiations. No formal agreement was signed. The compromise was announced by Trump with a public handshake with Liu.

The compromise comes after weeks of diplomatic sparring, which included the blacklisting of nearly 28 Chinese security companies and bureaus by the US, for allegedly being involved in human rights violations in the Xinjiang province.

While the two governments seem to be upbeat about the negotiations, uncertainties continue to cloud international markets, especially considering how bellicose the Trump administration has been on this matter. Also, the fact that China is yet to confirm the specifics of this truce – it has only stated that “substantial” gains have been made in the negotiations – has left many uncertain.

Some of the most pressing matters that were not addressed at the negotiations include the blacklisting of several Chinese companies, including Huawei and over 140 of its subsidiaries and affiliates, under various pretenses. These companies were given temporary trade licenses for a 90-day period, which will expire on November 19. There is also no clarity over the upcoming phase of tariffs that are set to take effect in December. China had sought a time-bound phasing out of all tariffs, which was not accepted by the US.

Courtesy: Peoples Dispatch
Get the latest reports & analysis with people's perspective on Protests, movements & deep analytical videos, discussions of the current affairs in your Telegram app. Subscribe to NewsClick's Telegram channel & get Real-Time updates on stories, as they get published on our website.
Chinese agricultural imports
Donald Trump
Huawei
Liu Hei
Tariffs
Trade War
US Blacklists Huawei
US-China Trade War
Related Stories
Iranian foreign minister Javad Zarif. (Photo: Jamaran)

Iran Reiterates its Commitment to JCPOA, Proposes US Return to the Deal

IMF

IMF and Big Business for Universal Vaccination: Better Red than Dead

Kamala Harris being sworn in as US Vice-President. At right extreme is President Joe Biden. Washington, DC, January 20, 2021

Biden’s Idea of India and Savarkar’s is Poles Apart

brazil

Why Neoliberal Leaders Who Failed to Protect Their Countries From COVID-19 Must Be Investigated

US sanctions on Venezuela

USA’s Game Plan in Venezuela: Strangulation through Sanctions

modi and trump

Why Hindutva Supporters Find Trump’s Defeat Hard to Accept

An anti-Bannon placard at a pro-immigrant rights protest in Boston in 2017. Photo: Ban Bannon by Pierce on Flickr. This photo is available under a CC BY 2.0 licence

Steve Bannon and Corrupt Officials Given Last-Minute Pardon by Trump

Biden Signs Executive Order Rejoining Paris Climate Agreement, to Come Into Effect February 19

Biden Signs Executive Order Rejoining Paris Climate Agreement, to Come Into Effect February 19

Will the Dems Sell us Out in the Midst of a Pandemic?

Trump’s Second Impeachment Shows the World the Power That Corporations Have Over American Politics

Guatemalan security forces repressed thousands of Honduran migrants with tear gas and stun grenades on January 17, in the town of Vado Hondo, in the department of Chiquimula, bordering Honduras. Photo: Prensa Libre

Guatemalan Security Forces Repress Honduran Migrant Caravan Heading Towards the US

Share on FacebookShare on TwitterShare on WhatsAppShare via EmailShare on RedditShare on KindlePrint
Share
Share on FacebookShare on TwitterShare on WhatsAppShare via EmailShare on RedditShare on KindlePrint
Share

Related Stories

Associated Press

Biden Repudiates Trump on Iran, Says Ready for Talks Nuke Deal

19 February 2021
Washington: The Biden administration sai
M.K. Bhadrakumar

Biden Kickstarts China Re-engagement

14 February 2021
What distinguishes the new US administration is that there has never been an American president before with anywhere near the foreign pol
Jaydeep Basu

Cut, Copy, Waste: Indian Sports’s Social Media Has Been Co-Opted To Serve A Nationalist Agenda

07 February 2021
The name, Anil Dey, doesn’t ring a bell these days.

Pagination

  • Next page ››

More

  • Ports

    Unions Fear Privatisation of Ports Pose Threat to Employment and National Security

  • Narega Bihar

    Thousands of Bihar’s Farm Labourers, MGNREGA Workers Protest, Seek Housing

  • ECI

    Bengal Elections: PM’s Photo on COVID Vaccine Certificates Violates Poll Code, TMC tells EC

  • Mining

    Bengal Elections: Ahead of Polls, Mamata Banerjee’s ‘Pet’ Mining Project Faces Renewed Opposition

  • Load More
Subscribe
connect with
about