US, China agree to new round of trade talks next month
As the trade war between the U.S. and China continues, delegations from both countries are scheduled to meet for negotiations next month, according to a statement from China’s Ministry of Commerce.
Chinese Vice Premier Liu He is said to have held a phone call with U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin – where both parties agreed to hold what will be the thirteenth round of high-level economic talks in Washington early next month.
The two sides will hold consultations in mid-September to prepare.
Over the weekend, a new round of tariffs went into effect on goods from both countries. The U.S. implemented tariffs worth 15 percent on a host of goods from China, a decision that was met with countermeasures.
A number of experts cut their growth forecasts for China’s gross domestic product in 2020 to less than 6 percent – including Bank of America Merrill Lynch.
President Trump on Tuesday urged China to come to the negotiating table soon, or things could get “much tougher” for its economy in a Twitter post.
However, experts believe China could be prepared to play the long-game as the trade war drags on. Researchers from Deutsche Bank wrote a note over the weekend, explaining how they believe China appears to have shifted its strategy from a focus on “resolution to one of endurance.”
“We think China is neither aiming to quickly reach a trade deal, nor trying to hit back at the U.S. as hard as it can,” Deutsche Bank China Economist Yi Xiong wrote in a report. “Rather, China seems to have internalized the trade war as a given fact, and is trying to preserve China’s economic resilience under rising tariffs.”