A fresh new round of discussions on the ugly trade dispute between China and the US has started. On Wednesday, officials from both countries initiated the talks, the purpose of which is to finally put an end to the devastating conflict that both countries have unfortunately found themselves in.
This happens amid the new round of tariffs that are about to hit, pending a review by the government. According to Channel News Asia, the Federal Reserve has already warned the government about ongoing hostilities. They reminded the government that an ongoing dispute is hazardous for the long-term economic plans of the country, no matter how fitting it may be in the Trump administration's plans.
There are talks happening left and right. Officials from Mexico are in discussions with the US even as China and US are in a fresh round of talks. They are in it to finally lay down a plan to complete the North American Free Trade Agreement, a rewrite of a deal that could also include northern neighbor Canada in the long run.
This is a welcome development, especially as earlier planned tariffs from both countries are about to come into effect. China and the US have a pending tariff on $16 billion of each other's goods in what might be a new trade war brewing between each other.
The root of the problem is Beijing's technology policy. The US has accused Beijing of interference as well as spying on key government installations. Beijing has denied these thus far, and per NY Post, the new round of tariffs will arrive Thursday. An additional 25 percent of duty will be slapped on goods coming from the US and vice versa.
The Chinese government has continually said that the US policies are destructive in nature and are against existing trade rules set by the world governing body. It further says that it will take legal measures and file a complaint against these policies in the World Trade Organization.
The key instigator of these talks has been the situation in both countries. In the US, rising prices have hurt US manufacturers, especially farmers, while in China, the economy-from real estate investors to overseas manufacturers maintaining factories here-have reeled from the destructive conflict hurting both countries' economies.
