The world's two largest economies have agreed to resume trade talks in late August, sending optimism across international markets that the mounting trade war is finally coming to a conclusion.
At the invitation of the United States, China will be sending its delegation headed by Vice Minister of Commerce Wang Shouwen. He will meet with David Malpass, U.S. Under Secretary of Treasury for International Affairs.
The highly significant dialogue is set to take place in Washington on Aug. 21 and 22 according to the Wall Street Journal. It is perfectly timed before the two countries launch their respective new rounds of tariffs on each other's $16 billion worth of imported and exported products.
In a statement reported by AFP, China's commerce ministry underscored its objection of unilateralism and trade protectionism practices. The ministry upheld that China does not accept any unilateral trade restriction measures. It said it agreed to the U.S. invitation for dialogue on the basis of reciprocity, equality, and integrity.
Business analysts and market experts said the move by the two nations indicate thawing trade tension. They, however, believed that the talks in late August would likely not result in a complete 360-degree change to both China and the United States' stance on trade. They pointed out that the United States only sent their lower-level officials to the discussion. If big decisions are going to be sealed that day, Washington would have sent officials from the U.S. Trade Representative office which has direct control over the matter.
Indeed, White House Economic adviser Larry Kudlow cautioned China not to take President Donald Trump's determination to have Beijing amend its trade policies according to Reuters. Kudlow said the president is resolved to continue the trade war until it results in the elimination of intellectual property and forced transfer of technology - the misconduct that Trump has accused China of doing. Trump has also been pushing cuts on industrial subsidies and slashing a $375 billion trade deficit with Beijing.
Four anonymous sources from both sides told Reuters that the talks in late August appeared to be more inclined towards balancing the market as the tariffs take effect rather than ending the mounting US-China trade war.
Analysts wary of the development have a strong basis to doubt whether good news will come out from the scheduled talks. In May, the United States gave China assurances that tariffs were no longer to be imposed. Ten days later, however, the White House went ahead on imposing tariffs on $50 billion of Chinese products.
The world's two largest economies have been slapping tariffs one after the other since they have their last high-level discussions in June involving U.S. Commerce Minister Wilbur Ross and Chinese Vice Premier Liu He. The global economy has since been left at the edge of their seats as they watch on the escalating tensions.
