Chinese

China expects the US to cancel tariffs at the first stage of the deal

Summary

China expects the US to cancel tariffs at the first stage of the deal China continues to urge US to drop tariffs under Phase 1 agreement as trade talks between the world’s two largest economies drag out again. «The trade […]

China expects the US to cancel tariffs at the first stage of the deal

China continues to urge US to drop tariffs under Phase 1 agreement as trade talks between the world’s two largest economies drag out again.

«The trade war began with the introduction additional fees, and must be completed by canceling them. This is an essential condition for reaching an agreement.», – said Chinese Ministry of Commerce spokesman Gao Feng.

U.S.-China trade tensions persist for over a year. The amount of additional fees established by both sides, is estimated at billions of dollars. Today, Washington and Beijing are in the process of concluding the first phase of the deal to resolve some controversial issues.. PRC President Xi Jinping and US President Donald Trump were supposed to meet in mid-November at the Asia-Pacific Economic Cooperation summit in Santiago, but Chile canceled the event due to internal unrest.

China expects the US to cancel tariffs at the first stage of the deal

Gao Feng did not specifically refer to Trump’s comments, who said he did not want to cancel duties for Chinese products.

At the same time, anecdotal evidence suggests that businesses from both countries have tried in various ways to deal with higher tariffs.. For some US companies, one option is to redirect production or find new sources of imports..

«From a regional perspective, we have seen massive growth in exports destined for the United States from markets such as Vietnam and Taiwan.», – said by Nick Marro of the Economist Intelligence Unit.

«The biggest risk here is that most types of tariff avoidance are illegal under US trade law and therefore some companies in the country may face United States retaliation.», – he added.

Average price for products sold by Chinese sellers on Amazon rose 29% between October 2017 and 2019. Similar indicators for American entrepreneurs gained 35% over the same period.