U.S-China trade war escalated to ideological and political conflict

Market Trends - 19/09/2019


Deputy trade negotiators from the U.S. and China arranged to
return to the table in face-to-face discussions on Thursday. That will be the
first time in almost 60-days since the world’s two biggest economies attempt to
connect the difficult policy disagreements and try to resolve the ongoing
dispute between them in order to avoid a bitter and protracted full-scale trade
war.





Thursday and Friday discussions have the goal to lay down the
foundation for high-level conversations at the beginning of next October. That
will define whether the U.S and China are negotiating towards a resolution or
are going towards to new round of more expensive tariffs on their goods.





A gathering of approximately 30 Chinese executives,
accompanied by Vice Finance Minister Liao Min, is expected to begin with
discussions on Thursday morning at the U.S. Trade Representative’s office. The
U.S. is going to be represented by the Deputy USTR Jeffrey Gerrish. 





The talks are expected to concentrate mainly on farming. The
discussions will also cover the U.S. requests that China must largely boost its
purchases of American farm commodities.





 The two days talks
will include agricultural problems, while one of them will be used to cover
topics like the core moves needed to establish China’s intellectual property
protections and the U.S technology issue.





Government executives, Analyst, and executives in both U.S
and China stated that even if the September and October discussions provide a
short term positive agreement that covers purchases and a release for the
Chinese Huawei products the U.S.-China trade conflict has developed into a
political but most important into an ideological conflict that is more profound
than taxes and may need years to fix. A principal in PwC’s national tax
services practice named Jon Lieber said a potential “very narrow agreement”
next month will not going to resolve the underlying disagreements between the
U.S and China.


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