The phase 1 trade deal between the United States of America and China have been finalized and to be signed later this week. Nonetheless, several economic disputes between the two parties are yet to be resolved.
Following the escalation of the trade war between the U.S and China, the Trump administration had announced to forfeit the semi-annual talks between the two countries that were originally targeted at resolving such disputes.
With the phase 1 deal in the pipeline and trade relations between the two largest economies of the world getting better, the two countries have announced to restart the tradition of semi-annual talks which will help resolve the remaining economic disputes in the time to come.
Official Announcement Will Be Made Once The Phase 1 Deal Is Signed Later This Week
As per the sources, an official announcement regarding the reboot of the comprehensive economic dialogue between the U.S and China will be announced as the two parties sign the phase 1 trade deal at the White House later this week.
As per the experts, the regular meetings are likely to help a great deal as the two economies will have a broader platform for continuous, high-end conversations outside of the trade negotiations that are known to get rocky at times. So far, it is being speculated that Chinese Vice Premier Liu He and U.S Treasury Secretary Steven Munchin will be leading the regular sessions.
The trade war between the U.S and China has gone on for over a year and has kept the global financial markets under pressure while hurting business confidence as well. The Strategic Economic Dialogue between the two parties started under the former U.S President, George W. Bush in the early 2000s. The forum enabled the U.S and China to hold talks twice every year and effectively manage the economic complications following a rapid expansion of the Chinese economy that saw a massive increase in the U.S imports of the Chinese products.
Trump Held The First Comprehensive Economic Dialogue With China In July 2017
President Barack Obama kept the semi-annual talks alive in his tenure with President Donald Trump naming it the Comprehensive Economic Dialogue that was held with China in July 2017. Later on, however, the Trump administration saw the dialogue as more of a process and not the one with valuable outcomes. Consequently, therefore, the White House announced that it will end the dialogue and be more confrontational with China from now on. The new U.S strategy introduced increased tariffs on Chinese goods to force the Asian superpower into economic concessions.
The forex market is yet to respond to the news.