Much to the respite of the crumbling global trade and investor market, the two rival economies, the United States and China, resumed talks on Wednesday in Shanghai. The team of US negotiators, led by US trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, met Chinese Vice-Premier Liu He.
Commenting over the talks, China’s state news agency, Xinhua said, “The two sides conducted frank, highly efficient and constructive in-depth exchanges on major issues of common interest in the economic and trade field.” It added that the export of agricultural goods from the US to China was also discussed.
US President Donald Trump criticized China’s attitude ahead of the talks. “My team is negotiating with them now, but they always change the deal in the end to their benefit,” he tweeted on Tuesday.
The first face to face negotiation between the two nations since the trade truce got declared last month, got winded up earlier than expected and the US team left for the airport without interacting with the reporters.
The trade talks between the world’s biggest economies started to take a downturn earlier this last month when the Trump administration accused China of having “reneged” on its previous commitments of making structural changes, while Chinese officials argued that Americans raised their demand.
US has accused China of unfair trade practices including barriers against foreign companies to access its market and providing subsidies to favour Chinese companies. Trump administration said that such a biased approach has resulted in the loss of hundreds of thousands of US jobs over the past two decades. To put pressure on Beijing, Washington levied tariffs on Chinese imports. Beijing responded by putting duties on virtually every product it buys from the US.
The trade war between the two roughly amounts to $360 billion worth of each other’s goods. Unfortunately, it is hampering not only these two economies but also global investment and trade markets.
Many economists believes that trade conflict between the two, is just the face of their rivalry, whereas the underneath issue is the geopolitical competition in different sectors. After battling over the technology sector, not the two have issues over the agricultural sector. Washington and Beijing are to conduct more trade talks to put an end to their year-long economic cold war.