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Angle: US-China trade war, a groove deepened in October ministerial negotiations

2019-09-07T00:13:25.877Z


[5th ​​Reuters]-The United States and China have recently agreed to conduct ministerial trade negotiations in early October. However, since negotiations started in May, the two countries continued to strengthen sanctions tariffs, breach of promises, and compensation for slander.


[5th ​​Reuters]-The United States and China have recently agreed to conduct ministerial trade negotiations in early October. However, since negotiations started in May, the two countries have been strengthening sanctions tariffs, failing to commit promises, and responding to slander.

The recent movements of the two countries over trade negotiations are summarized.

<Promise made counterfeit>

The United States and China will hold a preparatory talk in mid-September for a ministerial talk in October. The two countries have agreed to work to create a favorable environment, but no specific measures have been shown.

In May, China withdrew its commitment to amend the law to solve problems such as intellectual property rights infringement and technology transfer compulsion, but negotiations stalled, but both countries signaled that they would change their attitude toward negotiations. It has not left.

US officials have said earlier that the resumption of negotiations depends on whether China accepts discussions based on a consultation document before the policy change in May, but there are no signs that China has agreed.

Trump US President Xi Jinping, China Jintao met in Osaka in June, but the Chinese side promised to buy 20 million tons US soybeans, purchase amount of up to now has remained in the half. On the other hand, the US has promised to ease measures that have banned US companies from selling parts to China's major telecommunications equipment company, Huawei, but has not implemented it.

<Huawei and Hong Kong issues>

The Chinese government is in pain because of Trump's decision to effectively ban US companies from dealing with Huawei. China demands that Huawei sanctions be lifted, regardless of whether trade negotiations have been agreed. However, the US government has urged other countries to reduce transactions with Huawei, and flickers the list of sanctions for other Chinese companies.

The fact that Trump said on August 14 that the Chinese government would be involved in a large-scale demonstration in Hong Kong would make trading in US-China trade negotiations difficult would increase tensions between the two countries. If Hong Kong protests escalate further, the possibility will increase.

<Intellectual property rights and technology transfer>

Before the negotiations stalled in May, US officials stated that China had made more proposals than before, with progress in two areas: intellectual property protection and technology transfer enforcement. US officials also said that progress has been made in areas such as cybercrime, services, currency, agriculture, and non-tariff trade barriers.

On the other hand, China explained that it proposed to implement government assistance in accordance with the World Trade Organization (WTO) guidelines, but did not disclose details.

However, after the talks were broken up, the representative of Lightheiser US Trade Representative (USTR) was at a parliamentary hearing, and China withdrew its commitment on digital trade issues such as US access to Chinese computer-related services. Said.

US officials said China has proposed buying over $ 1 trillion of goods such as agricultural products, energy, and industrial products over the next six years, but China has not yet reached agreement on the actual purchase between the two countries. .

<Custom duties as a means of negotiation>

The issue before the negotiations started in May was whether or not the 25% sanctions tariff imposed by the Trump administration on $ 250 billion worth of imports from China was abolished. The United States wanted some sanctions tariffs to continue in order for China to adhere to the agreement, but China called for the immediate elimination of all sanctions tariffs.

Then the situation escalated. The United States plans to raise the sanction duty to 30% on October 1st, which is equivalent to the $ 250 billion equivalent, the National Day of China. The company also plans to raise the tariff to 15% on September 1 for some equivalent of $ 300 billion and 15% on December 15th.

According to analysts, the US government may accept a 5% tax rate postponement or a 15% sanctions introduction scheduled for December 15 to show a compromise to China.

China has imposed a 5% sanctions tariff on US crude oil since September 1, which may postpone the tax rate increase scheduled for December 15.

<Adverse effects on Japan>

Mr. Trump has repeatedly emphasized that it is China that bears the cost of sanctions and denies negative effects on domestic retailers and manufacturers. Began to admit that

Vice Prime Minister Liu Tsuru, who is responsible for negotiating in China, said on the 5th that the pressure on the domestic economy is growing, but the government can respond to all difficulties.

<Weapons not yet used>

China says it will make a list of foreign companies that it considers to damage Chinese companies. It also suggests limiting the export of rare earths to the United States as a means of retaliation. In addition, China may cancel orders for US-made Boeing aircraft.

Trump is asking US companies such as General Motors (GM) <GM.N> to withdraw production bases from China.

<Background>

China has a policy of raising its industrial base by 2025 in 10 strategic sectors such as aerospace, robots, semiconductors, artificial intelligence (AI), and new energy vehicles. However, the US is dissatisfied with China appealing to unfair means such as forcing technology transfer and infringement of intellectual property rights. China, on the other hand, perceives that the movement of the US hinders the rise of China in the global economy.

Source: asahi

All news articles on 2019-09-07

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