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Friday, 10 July 11:30 (GMT -05:00)

Business And Politics News

Beijing and Washington are getting ready for the final talks

The 90-day trade peace announced a couple of months ago is about to expire soon. However, the USa and China still have time to come up with an agreement and end the trade war. The final decision is expected to be made during the forthcoming meeting of the Chinese and American leaders.
A month before the expiration date, both the United States and China acknowledged the progress in the talks. So, everyone seems to be looking forward to the meeting between the two leaders. The date of the meeting is yet to be specified but is likely to take place in the near future.
At this point, the parties have managed to agree on an increase of the Chinese import of American agricultural products, energy carriers, as well as industrial products and services. At the same time, the USA has confirmed the intention to impose duties on the import of Chinese products to the amount of 200 billion dollars. This is due to happen on March 2nd, 2019. However, experts say that his scenario will be implemented only if the parties don't sign an agreement before the mentioned date.
As the result of another round of talks, that ended on January 31st, both the USA and China highlighted considerable progress after holding honest, consistent and specific discussions on the key topics like the trade balance and the forming of a mechanism to implement the bilateral agreements in the future.
On top of that, the parties agreed to take all the necessary actions to eliminate the imbalance in the bilateral trade relations, which is expected to be reach mainly through bigger imports of American products by China. 
President Trump underlined, however, that the latest round of the trade talks still hadn't clarified some of the key issues. So, these issues are expected to be resolved during the mentioned meeting between the two leaders, especialy as both of them are reported to be very interested in the meetings and its positive results. So signing a major agreement is a very likely scenario, international experts say.
For those of you who don't know, the trade war between Beijing and Washington has been going on since last summer. Back then, both China and the United States mutually imposed 25% during on their imports of each other's products and services, that were estimated at 34 billion dollars by each of the parties.  
During the G20 summit in Argentina in December 2018, the USa and China managed to come up with a trade peace agreement. Starting from January 1st, 2019, the USA promised not to raise any duties while China promised to increase the import of American products in response. This compromise was the first major achievement in the talks. The agreement is to expire in March 1st. Not so long ago, the White House remined Beiging that in case of a failed talks or the absence of an agreement by March 2nd, they would impose the 200-billion-dollar duties. 
At the same time, if you have been watching the international markets for the last few months, you can clearly see globalism affecting them in a serious way. The biggest American corporations seem to have been the bigest losers to date. In particular, the pessimistic forecast made by some experts coupled with weak reports from some of those companies affected the stock market. Apparently, those weak sales result for a serious drop in the sales fo their products in China. So, international investors are afraid that other international American-based companies with their businesses being dependent on China may also be affected in the near future, which is clearly not in favor of the companies' stocks.
On the other hand, when evaluating the situation, the experts are paying attention to the fact that the Chinese GDP has dropped all the way down to the lowest level in 28 years! Given all of the information mentioned above, it's almost safe to say that the forthcoming summit will end up with a major agreement.


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