Will US and China Manage to Stop Trade Disagreements Through Negotiation?
The United States and China reaffirmed the importance of maintaining constructive bilateral relations. The US voiced willingness to negotiate a resolution to an escalating trade fight with China after Beijing retaliated against proposed US tariffs on $50 billion in Chinese goods by targeting key American imports. Cui Tiankai, China's ambassador to the United States, stated that negotiation remains Beijing’s preference.
The US administration on Tuesday announced a list of 1.3 thousand names of products imported from China, in relation to which it is planned to introduce an additional 25% duty. In response, the State Council of China announced the introduction of 25% duties on American cars, petrochemicals and agriculture products - a total of 106 items. Experts fear that the two countries are on the brink of a trade war that will jeopardize economic growth around the world.
President of the United States Donald Trump has repeatedly stated that he does not like the foreign trade deficit in trade with China, reaching, he said, $500 billion. China ran a $375 billion goods trade surplus with the United States in 2017. Trump has demanded that the China cut the trade gap by $100 billion. US is one of China's largest trading partners. The cost of all products supplied to China from the United States is estimated at 0.7% of US GDP, and the cost of Chinese exports to America is more than 3% of China's GDP.