In what seems to be another forward step in the possible resolution to the ongoing trade dispute between the world's two largest economies, the United States and China have reportedly agreed to restart their previously halted semi-annual trade talks.
Both countries previously held semi-annual talks aimed at resolving economic disputes. However, the practice was all but abandoned at the start of the Trump Administration, about the same time when tensions between both nations had escalated.
The Comprehensive Economic Dialogue, which is held twice every year, was initially started during the administration of former President George W. Bush. The semi-annual meetings, which were then called the Strategic Economic Dialogue, were then continued under the administration of former President Barack Obama.
The dialogue was established as a way for the world's two largest economies to work together to tackle economic issues that stemmed from their mutual economic growth.
Since it was established, China's economy and its exports to the United States had increased substantially through the early 2000s up until the early 2010s. Since the start of the trade dispute between the two nations, bilateral export and import numbers of dropped significantly.
The imposition of tariffs by both countries against each other has not only affected their respective economies but other countries as well. The tit-for-tat measures have managed to disrupt global supply chains, which resulted in huge declines in global financial markets.
US President Donald Trump and his administration chose to abandon the semi-annual dialogues in favor of a much of confrontational approach to China. The US chose to use tariffs to pressure China into making a deal. The administration often criticized the dialogues as being a useless endeavor that was heavy on processes and less on tangible outcomes. Trump was able to hold one round of the dialogues, which he renamed as the Comprehensive Economic Dialogue, back in 2017 before completely abandoning it in favor of his much more aggressive strategy.
According to sources close to the deliberations, officials from both sides will likely make the formal announcement of the resumption of the China-US Comprehensive Economic Dialogue on January 15. The announcement will reportedly be made as part of the signing of the Phase one trade deal between both nations.
The resumption of the semi-annual meetings will also be seen as a sign of each nation's commitment to put an end to the dispute. If the sessions are reinstated, US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He would likely head them.
