The United States and China have prolonged their trade discourse in Beijing to another day amidst expectation that the two largest economies of the world might reach a deal to avoid a potential confrontation. On 8th January, a US official stated that the trade discourse would be held for the third day that wasn’t scheduled previously. As per the official, progress has been made on matters of making purchases from US farm and energy commodities as well as better access to China’s markets.
However, people having knowledge about the peace discussion stated that the two largest economies of the world remained distant on structural reforms of China, as Trump presses strongly to stop the likely theft and forced removal of US technology and the way Beijing should stick to the promise.
US President even tweeted that talks are going well. Steven Winberg, assistant secretary for Fossil Energy at the U.S. Department of Energy, briefed reporters in Beijing that the discussions are going well.
This week’s trade discussion in Beijing is the first direct talks since US President Donald Trump and his Chinese counterpart Xi Jinping, agreed for a 90-day truce in a trade battle that saw two sides enforcing tariff’s on each other’s goods.
Experts stated that Trump is anxious to reach a solution in order to help the market move upwards. Since the truce started, the S&P Index has fallen by 8%. A spokeswoman from the U.S. Trade Representative’s office stated that discussion would carry on till Wednesday and a statement will be released soon.
In case a no deal is reached by 2nd March, Trump stated that he will go ahead and increase the tariffs to 25% from 10% on $200 billion worth of Chinese imports at a time when China’s economy is showing signs of slowing down. However, companies of both nations are facing the pain of the US levies and reprisal from China. El Paso, Texas-based Helen of Troy Ltd (HELE.O), had to cut down its sales and gross margin outlooks. The US levies on Chinese goods can make up 70% of the company’s cost of products sold. Stocks of Helen of Troy fell almost 13%, in more than six years faced the largest one-day drop.
Apple Inc (AAPL.O) jolted global markets by reducing its own sales outlook, citing weak demand in China.