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Sino/US Trade War

Sino/US Trade War

May. 14,2019

Sino/US Trade War


Major bilateral differences are over structural issues, the US trade deficit with China a minor one by comparison.
Committee of the Chinese People’s Political Consultative Conference vice chairman Zhang Qingli said “China never wants a trade war with anybody…but we also do not fear such a war,” adding:
“The US side has disregarded a consensus with China after multiple rounds of consultations, insisting on waging a trade war against China, (threatening) to escalate it” if its demands aren’t met.
Multiple rounds of talks failed to resolve all major issues. According to economists and political analysts, bilateral trade differences are harming investment in both countries.
A Rhodium Group/Mercator Institute for China Studies report said investments by Chinese firms in EU countries declined by 40% last year.
Acquisition of US tech companies by Chinese firms declined by two-thirds in 2018, according to financial data company Refinitiv. US acquisitions of Chinese firms also declined sharply.
For these and overall economic reasons, ruling authorities of both countries want resolution of bilateral differences.
China’s Commerce Minister Zhong Shan said “(t)he work team is still continuing to negotiate because we still have a lot to do.”

Xi and Trump won’t meet in late March or April unless able to formally sign off on a deal. Representatives of both countries may hold further talks in Beijing in the coming days, likely after China’s National People’s Congress ends on March 15.









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