China says it has agreed with USA to cancel tariffs in phases

China says it has agreed with USA to cancel tariffs in phases

"China has been very insistent that existing tariffs must be done away with in any deal, so the announcement shows the United States giving way in the face of Beijing's core interests", said Dr Huo, who is vice-chairman of the China Society For World Trade Organisation Studies.

"In the past two weeks, top negotiators had serious, constructive discussions and agreed to remove the additional tariffs in phases as progress is made on the agreement", Gao said.

The U.S. -China trade war that Trump began has been a drag on both nation's economies, and the leaders had initially expected to take a step toward resolving it ahead of the 2020 U.S. elections at an global summit in Chile this month.

Global markets rose on signs of progress toward ending the U.S.

The two sides continue to negotiate over where and when a "Phase One" deal would be signed. The Washington-based lender of last resort to indebted countries said its economists had already shown that the two countries' trade war had slowed global growth significantly this year.

"Given President Trump's love of tariffs, the additional element (of tariff rollbacks) may increase the risk and prolong the phase-one negotiation", said OCBC Bank's head of Greater China research Tommy Xie.

Trump said in late October that he would shortly reveal the new summit site, but an official announcement has yet to be made.

USA trade representative, Robert Lighthizer, is one of several officials who have argued that the duties on the $250bn of goods are a way of making sure China lives up to its commitments and should be in place for the long term. Gao said he had no further information on the location or timing.

President Donald Trump agreed to postpone a planned tariff hike while lower-level officials hammered out details. Beijing has yet to confirm the scale of its commitment.

Those issues include USA claims that China forces American companies to share intellectual property as a condition for doing business in the country, as well as allegations of Chinese industrial espionage.

Dozens of venues have been suggested for a meeting, which had originally been set to take place on the sidelines of a now-cancelled mid-November summit of Asia-Pacific leaders in Chile, a senior Trump administration official told Reuters on Wednesday.

That dampened hopes a face-to-face meeting might produce progress.

"There was a study done by one of the European think tanks that said of the 25 percent [tariff], 20.4 or thereabouts had been absorbed on the Chinese side, either through the deterioration in currency or through prices, and only about 4.5 percent was absorbed on the US side", Commerce Secretary Wilbur Ross told Gerry Baker during an interview on FOX Business' "WSJ at Large".

Reuters reported earlier that the signing might be delayed and likely wouldn't occur in the U.S.

More complicated issues would be tackled in later negotiations, Ross said.



Latest news

Thai PM bans Cambodian opposition leader from returning via Thailand
Sam Rainsy, the founder of the banned Cambodia National Rescue Party, has spent the last four years in self-imposed exile. The country recently turned away Mu Sochua , the CNRP's vice president, when she flew into Bangkok's main global airport.

Lady Gaga axes show due to illness
Lady Gaga axed her Las Vegas show on Wednesday (06.11.19) as she was "very sick". "I promise", she further added. In addition to her Las Vegas residency, Lady Gaga launched her own makeup line, Haus Laboratories, in September.

‘Monday Night Football’ black cat still on the loose at MetLife Stadium
After that came up empty, stadium officials asked PuppykittyNYCity - a trap, neuter, release and no-kill shelter - for help. The cat that ran onto the field at MetLife Stadium during Monday night's Giants-Cowboys game has not yet been captured.

Green's status for debut up in air after sitting out practice
In other words, besides the ankle swelling, little is clear about Green's future - in the short and long term. At this point it's very unclear if Green will suit up this Sunday against the Baltimore Ravens .

Els names rookies Im, Niemann in Presidents Cup captain's picks
Day has dropped to world No.27 after a winless year and has a poor Presidents Cup record of five wins and 11 losses. Cantlay, Schauffele and Woodland are the only players who have never competed in a Presidents Cup or Ryder Cup.

Other news