US-China Trade Battle Hits Global GDP as Negative for 2-3 Years
United States and China have agreed to resume trade talks - Photo by GettyImages

JAKARTA (TheInsiderStories) – United States (US) and China high-level officials ended trade talks in Washington on Friday (02/01), agreed on several issues. At the meeting, President Donald Trump said, US had made tremendous progress on a variety of sticking points, including technology transfers and intellectual property.

To deepened the talks, Trump will meet Chinese President Xi Jinping for further agreement, he added. During the two-day talks, Chinese Vice Premier Liu He met US Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin, and Commerce Secretary Wilbur Ross. It closed with Trump joining the talks and met Liu, in Oval Office.

A day after US-China talks ended in Washington, China purchased at least 1 million tons US’ soybeans. China pledged to purchase 5 million tons US’ soybeans.

In the deal, China also agreed to increase US goods imports in agriculture, energy, and others. Moreover, the Bamboo Curtain  country has followed US request to not violating the country’ intellectual rights and stop “forced” technology transfer to Chinese firms.

An administration official later clarified doubling amount of US soybean purchases, since the trade resumed in December. US soybean sales to China, which totaled 31.7 million tons in 2017, were largely cut off in the second half of last year by China’ retaliatory tariffs.

Besides agricultural products, China also pledged to increase imports of US energy products, industrial goods, and service products, according to Xinhua news agency. Moreover, the meeting also discussed US demands so China take steps to protect American intellectual property and end forced technology transfer to Chinese firms.

Lighthizer said there was substantial progress on these issues. He stated, “At this point, it’s impossible for me to predict success. But we’re in a place that if things work out, it could happen.”

But when Lighthizer was asked whether the two sides discussed revoking US tariffs on Chinese goods, Lighthizer claimed that tariffs were not part of the talks.

At the end of the talks, both sides agreed for a future meeting. Trump said, he would meet Chinese President Xi Jinping next month to seal the comprehensive trade deal. Speaking at the White House he claimed that he was optimistic that the world’s economy superpowers could reach the biggest deal ever made.

US official said the US and China are working to set up a meeting between Xi and Trump at the end of February. There is a possibility that deal seal will be scheduled in line with Trump and North Korean leader Kim Jong Un second meeting. Meanwhile, date and location for the Trump-Kim meeting will be announced early next week.

The end of US-China trade talks gives a good sunny day to global market. Indonesian Rupiah strengthened to below 14,000 against US Dollar last week.

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