Top negotiators from China and America were expected to meet again in Beijing on March 28 and 29 to put an end to the ongoing trade war between the two nations.
Since early 2018, the two governments have been engaged in a never-ending trade war that has cost both the countries billions of dollars and damaged the global economic growth. To put an end to this situation, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin arrived in Beijing on Thursday for a new round of talks with the Chinese officials regarding the trade deal.
As per the current situation, there is a world of difference between the access and legal rights granted to the Chinese companies operating in the West and the tough trading conditions faced by the US companies in China – except that the US companies have a little legal right in China, against its governmental trade policies.
The US government levied taxes on $250 billion worth of Chinese imports, which included technology, industrial goods, and other furniture and construction materials since 2018. China returned the favor by levying tariffs on about $110 billion worth of US goods, including soybeans and other commodities, in order to end the disadvantageous trade war. In the current scenario, China tried to make unprecedented proposals in its talks with the US.
The proposals included the agreement of both the countries on areas of forced technology transfer and cyber theft, intellectual property rights, services, currency, agriculture, and non-tariff barriers to trade. The US government officials believed that it is a wider fight, which would set the rules of the global economy for the future as the US demands for structural reforms including reduction in Chinese industrial subsidies and heavy involvement in China’s economy. Protection of intellectual property is another prime concern of US in this trade war.
However, the officials in Beijing are trying their best to push the US government to remove tariffs on Chinese goods. It is certain that the uneven ongoing trade negotiations along with trade deficit and alleged forced technology transfer are the biggest hurdles, which when not negotiated on serious level would severely affect the economies of both the nations.