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Will the US and China finally agree on a trade agreement?



  This file, taken on November 9, 2017, shows US President Donald Trump (L) and China

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AFP / Getty

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Can the US and China divide their cleavages bridge?

Top sales agents from the US and China meet in Washington to reach an agreement.

This is the second round of talks since the meeting of Presidents Donald Trump and Xi Jinping last year in Argentina and the negotiation agreement in the hope of defusing an escalating tariff war.

There is widespread skepticism that the two sides can make a substantial deal by March 1

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Recent charges against Huawei have contributed to the complications.

At a press conference this week, Treasury Secretary Steven Mnuchin and White House Economic Advisor Larry Kudlow made some promises.

"Just let me remind people, we still have 30 days left, so my expectation is that we will make a substantial progress on these meetings, but I just want to emphasize that these are complicated issues," said Mr. Mnuchin.

Last week, US Secretary of Commerce Wilbur Ross said the two sides remained "miles and miles apart".

What is it about?

Mr. Trump has blamed China's rise as an exporter for a long time for a loss of production and other jobs in the US.

But the problems faced by the two countries are broader than the trade deficit.

The US urges China to change its economic policies, which unjustifiably favor domestic companies through subsidies and other support.

has also accused the government of supporting technology theft as part of its broader development strategy.

Where are the two countries now?

The US introduced tariffs on Chinese goods worth $ 250 billion last year. China slashed in-kind and hit US $ 110 billion in tariffs

The move shook financial markets and caused concern in both countries over the slowdown, especially in China.

This has put pressure on a deal, but it has led to pressure remains unclear whether the two sides can overcome their differences.

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Chinese officials are resistant to the targeted wholesale changes from the US and the lawsuits against Huawei – one of the largest and most successful technology companies China – have contributed to the political tensions.

Meanwhile, Trump rejected a self-described "tariff man" an earlier proposal from Beijing to settle the dispute with increased purchases of US goods.

According to reports, China has expanded this offer in recent weeks. And at times Mr. Trump seemed to reassure the public that an agreement remains within reach.

It would make "so much sense" that China "finally makes a real deal," he wrote this month on Twitter. 19659028] Skip Twitter contribution from @realDonaldTrump

End of @realDonaldTrump's Twitter post

What's next?

If the two sides can not reach an agreement by March 1, the US has announced that it will raise the tariff on Chinese goods worth an estimated $ 200 billion from 10% to 25%.

Mr. Trump also saw tariffs on additional products worth $ 267 billion.

White House advisors have reportedly split, and Mr. Trump's focus is on meeting Vice Premier Liu He in Washington this week.

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EPA

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Economists fear that tariffs would affect world trade

Mr Trump might decide that an agreement would strengthen his political standing following a bitter struggle with Democrats for the purpose of financing the border wall and closing the government.

But he could also hope to base his base with protectionism.

Capital Economics analysts said, "We believe the two countries may be able to reach a face-saving agreement to bridge them in the short term and avoid escalation."

At the moment, odds favor the limited truce a little longer.


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