Following Saturday’s meeting between U.S. President Trump and Chinese President Xi Jinping, tariffs between the two countries look to level out as the U.S. agrees to hold back on proposed increases. Consequently, negotiations between China and the U.S. will resume for the first time since May.
Greg McBride, commodities broker for Allendale, provided insight on what is to be expected in upcoming negotiations.
“What we have heard is that we are going to restart negotiations with China. Everyone basically wants to have the conversation revolve around being fair to both sides. Obviously the U.S. wants to even up the trade deficit. The other thing was that we are not going to impose new trade tariffs right now; we’re going to be waiting on that one.”
A topic of big discussion in the Trump Administration is the world’s largest telecom network equipment maker, Huawei Technologies Co. In the past, the Chinese company’s technology raised concern in regards to U.S. national security. Huawei’s 5G telecommunications infrastructure, up until now, could only be obtained through a special permit. President Trump has since agreed to be more flexible.
“We are going to relax some of the sanctions that we have against [the] telecommunications company, Huawei, so some U.S. companies can sell [more] products to them.”
While negotiations with China seem promising, we are a long way from an agreement. An official English-language Chinese state media, China Daily, wrote following the summit, stating they are also not sure when to expect an agreement.
“Even though Washington agreed to postpone levying additional tariffs on Chinese goods to make way for negotiations, and Trump even hinted at putting off decisions on Huawei until the end of negotiations, things are still very much up in the air.”