JAKARTA (TheInsiderStories) – With the United States (US) -China trade talks ongoing in Washington, President Donald Trump is scheduled to meet Chinese Vice Premier Liu He at 3:30 p.m EST. There is an indication that China will follow US demands for deepen economic reforms.
In his twitter account, Trump said that so far, the meetings are going well with good intent and spirit on both sides. He also stressed that China would better make a deal with the US, if they don’t want another tariff increase.
Before the trade truce, the US has threatened to raise tariffs on $200 billion worth of Chinese products from 10 to 25 percent, starting March. Even so, there will no final deal made until Trump meet China’ President Xi Jinping.
“China’ representatives and I are trying to do a complete deal, leaving NOTHING unresolved on the table. All of the many problems are being discussed and will be hopefully resolved. Tariffs on China increase to 25 percent on March 1st, so all working hard to complete by that date!” said Trump yesterday in his twitter account.
On the second and final day of the talks, US Trade Representative Robert Lighthizer will lead the negotiations with Liu. This is highest-level talks since Trump met Chinese President Xi on Dec. 1 and declared a 90-day truce to reach a lasting deal to end the trade war.
White House has said that they’ve made progress on Chinese technology transfers, intellectual property practices, and market access with China pledged to buy more American goods. Trump stated that China is expected to continue to buy US’ soybeans along with the continuing trade negotiations between the two countries.
“They started on a smaller scale, and today they started with a very large number. I really appreciate that. This is a fantastic sign of confidence,” said Tump in the Oval Office.
China is expected to import 5 million metric tons of US’ soybeans, he added. China usually buys 30 million to 35 million tons of soybeans per year from the US.
Although China signaled an increase in purchases of US agricultural goods, a number of analysts, traders and farmers said the amount of purchases might not be enough to compensate for the stockpiles of soybeans that had accumulated.
Chief Economist of DBS, Taimur Baig said in Asian Insights Conference in Jakarta, China’ economic slowdown is a dangerous threat to Indonesia this year. The bamboo curtain’ condition will affect Asian countries, seeing 45 percent of global demands is from the country.
“I think it’s not Brexit, not trade wars, but China,” he said.
China is Indonesia’s biggest exporter and importer. Indonesia non-oil and gas export to China holds 15 percent market share, valued US$24.39 billion. Meanwhile, China’s import holds 28.49 percent or $45.24 billion of Indonesia’s total import. Moreover, there are also huge amount of China’s foreign direct investment and bonds.
So far, the US and China trade talks has blown a good sentiment to Indonesian financial market. Rupiah appreciated by 0.28 percent against Dollar. And Jakarta Composite Index hit this year’ record, jumped by 1.06 percent to 6,532.96. The hike supported by local investors, as foreign recorded Rp11.53 trillion enormous net sell.
by Linda Silaen, Email: email@example.com