US-China Ceasefire

Some recent developments in the US-China Trade War have led to the two countries declaring a fragile peace. A 90-day ceasefire has been agreed wherein the trade hostilities have been paused for the time being.

Since taking office, the US President, Donald Trump has taken a nativist approach in engaging with the Chinese trade market, preferring to impose tariffs of $250 billion on Chinese goods in order to stamp out competition for the US local and global market which have been negatively affected by the Factory of the World, China.

China has, in turn, been imposing tariffs on US goods and has taken initiatives to reduce US imports and impose policies on US goods since 2017. China has imposed tariffs of $110 billion on US goods and tensions have been escalating for 2 years now.

A 90-day ceasefire will be one of the brief pauses in the trade war. It holds that China will allow for more American imports and the US president will not impose a further $200 billion worth of tariffs on the Chinese markets, thereby affecting Global and Chinese trade positively.

The two countries have been in talks for months with negotiations taking place at the G20 summit this past June where the countries opened themselves to talks.

Recent initiatives to implementing economic peace and restarting trade talks have seen the two superpowers negotiate to stop the tariffs and restrictions on major Chinese businesses and tech giants like Huawei.

Huawei was previously a major target of the US President, Donald Trump’s policies. It will now be one of the Chinese imports to the US market that do not have heavy restrictions. During the talks establishing the 90-day ceasefire, the US and Chinese diplomats have agreed to correct the bilateral trade imbalance with China importing more US goods.

US diplomats expressed concern at Chinese imports impacting local goods and markets in the US, thus China has agreed to import more US agricultural and electronic goods as the Chinese demand for US agriculture and electronics is still present.

The US President, Donald Trump, hailed his talks with President Xi Jinping as a success and was of the opinion that the negotiation for the agricultural exports will be good for the US local farming industry and that agricultural global trade will be a positive sign of growth.

Another 142 items were negotiated during the talks while the 90-day ceasefire was being discussed in an attempt to pause the trade war.