US and China trade negotiations: possible outcome and improvement of global processes
The U.S.-China trade war has lasted a long time and there is no clear solution yet. The heads of state cannot agree on what is reflected in the global processes. Uncertainty of relations is reflected in the activities of European stock exchanges. Experts cannot give precise forecasts on how and when the U.S. and Chinese trade talks will end.
The other day there will be another meeting of representatives of the states, where they should outline a further action plan. Negotiations will take place in Washington, and the Chinese side has announced a Deputy Prime Minister.
Despite the fact that it is not known exactly what kind of issues will be related to politics at the meeting, many experts speculate that only a number of items will be discussed. Issues related to the reform of China’s industrial policy, subsidies from the government, are not planned to be raised at the meeting, although they are one of the key points that are relevant to Washington.
While trade negotiations between the U.S. and China are in preparation, many players in the European market are cautious. Demand is increasing for reliable assets in order to be as secure as possible until the meeting results.
Tension is not only rising in relation to the US and China. Recently, Washington has revised the duties on products from Europe and the reaction to the innovations came immediately.
Italy’s foreign minister said that such measures on the part of the US may have consequences in the form of similar tariff increases. As the politician noted, it is high time for Washington to stop trade confrontation with China and start a productive dialogue.
The first signal of growing tension between the EU and the U.S. was the situation with the aircraft construction concern Airbus. In view of its subsidization, the WTO arbitrator granted the request of Washington and confirmed the legality of the introduction of countermeasures for Europe, which amounted to $7.5 billion per year. To this end, new trade duties were announced, which amounted to 10% for aircraft and 25% for products in the agricultural and industrial sectors. The new tariffs for imports from the EU will take effect at the end of October.
Italy was not the only one to speak out about the tough US policy. Spain has also reacted to the White House actions. It hopes that the conflict will be resolved soon, but even if it does not, the European government is ready to respond.
Experts hope that trade talks between the US and China will be successful and at least some issues will be resolved. Prolonged confrontation between the countries has a negative impact on the global economic processes and it is becoming more and more difficult to predict further actions for various sectors.