Sep 13, 2018 (China Knowledge) - U.S. Treasury Secretary Steven Mncuhin has extended an invitation to Beijing in an attempt to alleviate the trade tension from escalating further between the two countries. The invitation came a day after China’s announcement to approach WTO's permission for sanctions on U.S. The negotiations are expected to be held later this month.
In August, Chinese Vice Minister of Commerce and Deputy China International Trade Representative, Wang Shouwen, had visited Washington to seek a possible end to the ongoing trade war. However, couldn’t generate any positive outcome, and the negotiation ended in a stalemate.
President Donald Trump has threatened to slap China with another USD 267 billion worth of trade tariff last Friday when speaking with reporters on Air Force One. The move to imposed tariffs on Chinese imports started in March, in response to claims of Chinese intellectual-property theft and to protect U.S domestic companies.
Companies have been voicing their concerns regarding tariffs on Chinese imports. The comment period for the proposed 25% tariff on USD 200 billion worth of Chinese imports was meet with appeals for exemption by different U.S companies last week including Dell, Apple, Hewlett Packard and Juniper Networks. The potential tariffs will have an impact on the production and competiveness of the U.S who rely heavily on Chinese imports of components to run their manufacturing and operation.
News of potential talk and negotiation to defuse the trade tension have received positive responses from many. Emerging market assets have rallied on the news with Dow Jones Industrial Average turning positive.
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