China confirmed that its economic czar will continue the negotiations in Washington for the trade talks despite the threat of United States President Donald Trump to impose additional tariffs on the $200 billion Chinese goods. Concerns that he might cancel sparked after the announcement that might escalate the tariff war between China and the United States.
The trip of the Vice Premier Liu He to the United States showed the continued commitment of President Xi Jinping's government to end the conflict. The decision of the Chinese government to take part in the talks scheduled to start on Thursday keeps hope alive that the two largest economies in the world could agree in their political, economic, and trade differences as early as this week.
The United States pressured China with tariffs after claims that the Asian is backtracking on the trade deal. United States trade representative Robert Lighthizer said that they have seen erosion in commitments by China over the course of the last week.
According to experts, China and the United States both want to be world leaders in technologies like5G and artificial intelligence. They believe that issues on technology will hurdle in resolving trade frictions between the two.
William Hobbs, chief investment officer at Barclay's investment Solutions said that a deal of some sort is still likely to be agreed. He added that it may be the case that Trump, who once called himself a "Tariff Man", felt emboldened to put pressure on China, given recent positive U.S. economic indicators.
According to Geoffrey Yu, head of the United Kingdom's investment office at UBS Wealth Management, Tariffs, trade, goods, this is only a sideshow. He added that the big sign of United States contention is going to be on technology, on 5G and those issues. He believed that it is going to be a multi-decade process.
One of the key parts of the demand of Trump is the end of his claimed forced technology transfers. The United States claims that China forces foreign companies to hand over their technological know-how in return for access to the Chinese market.
Edward Tse, CEO of Gao Feng Advisory, believes that we're now in a very different era, where both the Chinese and the Americans, and perhaps other parts of the West, are really trying to take advantage of new forms of technology. He added that everyone is trying to leverage this new form of technology to come up with new ideas, new business models and new innovations.
