China trade war truce: 2 reasons why it's unlikely to last

04 December, 2018, 00:41 | Author: Gerard Cortez
  • Donald Trump hails 'amazing and productive' talks, as US agrees to suspend new China tariffs for 90 days

This amounts to a tactical pause, giving both sides time to work out the details, both of how China will in the short-term live up its promise to buy US goods and, more seriously, how the two sides will resolve the fundamental philosophical differences that continue to divide them on trade.

US President Donald Trump (R) and China's President Xi Jinping (L) along with members of their delegations, hold a dinner meeting at the end of the G20 Leaders' Summit in Buenos Aires, on December 01, 2018.

In a surprise announcement tweeted Sunday night, Trump also said China would "reduce and remove" tariffs of 40 per cent on cars, though Beijing has yet to confirm the move.

The price increase sparked a major hit to the roughly $10 billion worth of passenger vehicles the USA sent to China past year.

The US and China have imposed billions of dollars of tariffs on one another's goods, posing risks to global trade and the world economy.

The trade war has taken a toll on auto companies that manufacture in the USA, with the makers of Mercedes-Benz and its rival BMW both warning of lower profits this year as tariffs forced them to hike prices in China.

Earlier the U.S. president said he had postponed a planned press conference "out of respect for the Bush family", following the death of former President George HW Bush, at the age of 94.

US stock indexes also opened sharply higher in NY at the start of a new work week, with the widely watched Dow Jones Industrial Average of 30 key stocks ahead more than 1.5 percent.

The documents show Cohen was in contact with a senior Kremlin official about garnering the help of Russian President Vladimir Putin and ceased work on the project around the time of the June 9, 2016 Trump Tower meeting in NY that included Donald Trump Jr. and a Russian lawyer promising dirt on Hillary Clinton.

But observers warned there were still major issues that need to be resolved, including access for USA companies and intellectual property protection.

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Senators could vote on a bipartisan resolution to end U.S. military support for the Saudi-led coalition this week. Saudi Crown Prince Mohammed bin Salman was not on the list of the 17 individuals sanctioned by Canada.

Top executives from German carmakers Volkswagen, Daimler and BMW are to meet on Tuesday with senior USA officials at the White House to discuss the situation, the German news agency DPA reported, citing unnamed sources.

US-made vehicle brands like Tesla Inc and Ford Motor Co's Lincoln were at a major disadvantage as the move came soon after China slashed auto import tariffs for the wider market to 15 percent from 25 percent. "China's reform and opening-up's broad perspective recognizes that the rest of the world does things differently", it said in its editorial.

Beijing had reduced auto import duties from 25 percent to 15 percent in July. However, if the negotiations fail to bear fruit in the next 90 days, tariffs would be raised to 25 percent.

As two major countries with great influence, China and the United States shoulder important responsibilities in promoting world peace and prosperity, Xi told Trump.

The Global Times said the two sides would discuss expanding market access, protecting intellectual property and "joint control of cyber crime".

China, as part of the deal, will buy agricultural, energy and industrial products from the United States "to reduce the trade imbalance between our two countries", the White House said in a statement.

The United States and European nations have also long accused China of forcing foreign firms to transfer their know-how to local partners in order to do business in the country.

A full-blown resolution was not expected to be reached in Buenos Aires; the issues that divide them are just too hard.

Sound China-U.S. relations, Xi said, are in line with the fundamental interests of the two peoples and the broad-based expectations of the worldwide community.

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