US-China trade deal could happen in four weeks, says Trump
It may take another four weeks to decide whether a trade deal between the United States and China would be happening, stated President Donald Trump.
It may take another four weeks to decide whether a trade deal between the United States and China would be happening, stated President Donald Trump.
This is despite the high buzz that the two sides have ironed out most differences and are heading towards a deal.
Speaking to media before his meeting with Chinese Vice Premier Liu He on Thursday, Trump said: "we'll know over the next four weeks if the two countries have a deal."
Trump points to 'sticking points' in China talks
Trump also added that "intellectual property and theft" and "certain tariffs" continue to be the sticking points.
However, China's state media Xinhua quoted Chinese Vice Premier Liu He and said a " new consensus has been reached between China and the U.S." on the trade agreement's text under negotiation between the two sides.
During the meeting between Chinese VP and Trump, a message by Chinese President Xi Jinping was conveyed to Trump. Xi said, "both sides have made new and substantial progress on key issues regarding trade in the past month and Xi hoped both sides will continue to work together to conclude talks on the trade text as early as possible," Xinhua reported.
The sides mainly disagree on the U.S. stand to retain some tariffs as an enforcement tool, according to an official.
Trump is on record saying the administration's tariffs on $250 billion in Chinese goods would stay irrespective of a deal. But China insists that all duties must go for a broader agreement.
China wants U.S tariffs removed before it can lift retaliatory tariffs on the U.S. agricultural products and industrial goods.
The deal, if finalized, will be inked at a summit between President Donald Trump and Chinese President Xi Jinping.
Trump advisers divided on China pact
Some reports suggested that despite Trump's keenness on resolving the trade dispute, his advisers are divided on the matter.
While some advisers are concerned about the trade war's impact on financial markets and economy, others argue that confronting China on trade matters was long due.
However, the two sides have closed many gaps including terms of digital trade and access for American banks and financial institutions in China's market.
Good progress has been made by both sides and they are working to wrap up the talks, observed Myron Brilliant, executive vice president of the U.S. Chamber of Commerce.
Michael Pillsbury, an occasional Trump adviser on China attached to the Hudson Institute said the emerging accord may not sweep away all the irritants in U.S.-China trade and it will be "closer to being a cease-fire."
Tariffs on China imports hurting US economy says a study
Meanwhile, a study revealed that the burden of U.S tariffs on Chinese imports is hurting the American economy contrary to what Trump is claiming.
The study was conducted by economic experts David Weinstein of Columbia University, Princeton University's Stephen J. Redding and Mary Amiti from the Federal Reserve Bank in New York. They said tariffs on imports from China and other countries have squeezed the U.S. real income by $1.4 billion a month and similar effects are falling on countries that retaliated against the United States.
This article is copyrighted by International Business Times, the business news leader