Postponement of Tariffs or Full Scale Trade War: What Will Negotiations Between US and China Bring?

Forex News

Trade negotiations between representatives of the United States and China are continuing. Breakthrough on the results of negotiations is not expected, but it is possible to delay the introduction of duties on Chinese goods.

While the US delegation started the second and last day of talks in Beijing, US Treasury Secretary Steven Mnuchin said that the negotiations are successful. China, threatening to introduce retaliatory measures against the United States, including duties on American soybeans and aircraft, has not yet commented on the talks.

US Trade Representative Robert Lighthizer said on Thursday that the US is not pursuing the goal of changing China's economic system, but it will try to find ways to limit the harm it does to Washington and increase its openness for US companies.

It is expected, that the talks between Mnuchin and Vice Premier of China Liu He will discuss a wide range of US complaints about China's trade practices - from accusations of stealing technology to state subsidies for technological development.

Recently, Donald Trump has demanded a $100 billion annual reduction in the $375 billion US goods trade deficit with China, and responded to Chinese vows of retaliation over US tariffs with threats of duties on another $100 billion worth of Chinese exports to the United States.