China and the United States have agreed to hold high end trade talks early next month in Washington despite fears in what seems to be an ongoing trade war set to trigger global economic recession.
The news of this scheduled talks lifted most Asian share markets yesterday, raising hopes these can de-escalate the US-China trade war before it inflicts further damage on the global economy.
The United States have offered the invitation through a phone conversation between Chinese Vice Premier Liu with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin yesterday. Chinese Commerce Minister Zhong Shan, People’s Bank of China Governor Yi Gang, and deputy head of the National Development and Reform Commission Ning Jizhe also joined the conversation.
MOC spokesman Gao Feng told in a a press conference that the two countries agreed to jointly engage into definite actions to create favorable outcome. Consultations were conducted mid-September by the two parties in preparation for the high-level talks to achieve substantial progress. Gao empahsized how strongly China is against a suspected trade war in the making.
Ministerial talks are in the works as a spokesman for the US Trade Representative’s office confirmed that Lighthizer and Mnuchin spoke with Liu.
It was reported that News China’s main stock market index was up 1.6 percent at midday following the announcement. Tokyo’s Nikkei 225 gained 2.3 percent and South Korea’s main index rose 1 percent.
15% tariffs on an array of Chinese imports have already been imposed since Sunday. The planned increase to 30% tariff rate will begin on October 1. On the other hand, China began placing duties on US crude oil.
When the deal takes effect, China expects Trump to lift the tariffs. Both countries have raised tariffs on billions of dollars of each other’s imports, affecting trade in goods from soybeans to medical equipment.
Institute for Supply Management latest report showed that US manufacturing activities contracted for the first time in three years in August, triggering a manufacturing down turn, threatening the US economic expansion.