Last week, top delegates from China and the United States sat down again to work on settling the ongoing trade war. This marks the 13th official gathering for such discussions. Overall, signals and expectations came out positive.
Friday, President Trump announced that the US is on the verge of a temporary and partial truce with China. The discussions led to a few alleged successes, one of which being the promise of China to purchase $40B in agricultural goods. Stateside, President Trump stated that he will not go ahead with the 5% increase on list three items scheduled for tomorrow October 15th. In addition, he claims he will hold off on List 4b deployment of tariffs on December 15th.
Aside from unconfirmed rumors and a handful of comments, we all still remain in the dark as to the actual agreements that may or may not have occurred and what is on the horizon. From China, there are rumors that the two parties are still very far from each other on the topic of forced turnover of intellectual property.
Significant damage has already been done to US businesses affected by the section 202 tariffs, as well as lists 1, 2 and 3 even in their current values. Experts believe that Chinese officials are hoping to wait out President Trump with hopes that a new US President will be elected in late 2020. However, China cannot afford to suffer the continuation and increase to tariffs at the rate they have been announced and deployed. They must act in good faith to keep the United States steady with tariff actions and limit any significant increases.
More to come as news develops.