New Year 2019 brings an end to trade between US and China
In a long anticipated summit, the USA and China decided to hold off new tariffs after January 1, Chinese state media said after a months long trade war. According to the Chinese Daily and Chinese international broadcaster CGTN, both President Donald Trump and Xi Jinping came to a decision of halting tariffs “after January 1”.
President Donald Trump and President Xi Jinping at G20 leaders summit
Trump had said starting on New Year’s Day to increase tariffs from 10 to 25 per cent on $200 billion worth of Chinese imports. Although the White House did not release a comment on the decision of the meeting on the sidelines of the G20 summit in Buenos Aires, Larry Kudlow, senior Trump advisor mentioned that it went “very well.”
With Trump putting tariffs worth $250 billion, the trade tensions between China and the USA have increased since the beginning of 2017. Putting “America First” as per his policy, Trump has been defending US manufacturing. This is a direct attack on China for trading practices and especially on the alleged theft of foreign technology.
America has asked China to end the requirement that foreign companies team up with local partners, which is the key method that Beijing has been promoting its local vendors and businesses in multiple industries. Denying the charges, China has assured that it will make more efforts to welcome foreign imports.
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