The fresh round of trade-based discussing started last Monday in Beijing-china, soon after the latest negotiating talks that did not end well in Washington the previous week. This discussion between the United States and China is focused around the structural reformation. Basically, the US representatives are pressing China to introduce a modification in the way how it deals with the intellectual properties of the American Industries to shut the trade deal so that it could stop the escalating tariff rates on Chinese imports.
The discussion conducted last Monday did not conclude, with the US representatives announcing that loads of tasks are due to be executed. On 8th February, the White House in the US declared that the US negotiators are preparing to conduct the meeting again and press Beijing to make certain structural reforms. White House has also declared a specific timeframe for both the higher and lower group negotiators talks. On Monday, a meeting of the lower-level officials would be conducted. Jeffrey Gerrish, the Deputy US Trade negotiator, will lead the meeting whereas the higher-level official conversation will be organized on Thursday and Friday. The well-known US trade negotiators namely Steven Mnuchin and Robert Lightizer will be leading the talks.
Robert Lightizer to lead the talks after accepting a 3 months treaty in the trade battle with Beijing was a decision of the United States president. The US representatives are preparing their best to press Chinese Companies to bring appropriate structural reforms and stop the current trade deal practices, which the other country considers as an unfair deal. According to the United States negotiators, these unfair trade deals involve misusing the intellectual property and compelling the US firms to share their advanced technology with the Chinese company.
China didn’t accept the allegation of being engaged in such unfair practices
In the White House talks, Robert Lighthizer clearly mentioned that the United States is known for its avant-garde technology and trade secrets and the country needs to work with the companies where such technology and expertise are safe. “I am by no means predicting success; there’s a lot of work that has to be done”, Lighthizer added. Both the US and China plan to strike a deal before the final deadline i.e. March 1 when US tariff rates are planned to rise to 25% from 10% on Chinese imports that exceed around $200 billion.
Cui Tiankai, China’s Ambassador stated that the “zero-sum game” can turn out to be a critical aspect of the US-Chine bond. The US and Chinese firms must compete but at the same time corporate with one another, he added. This increased tension between the two countries has cost the United States and China millions of bucks and has shaken the global financial sector.
According to the US negotiators, if the talks do not proceed well and the negotiation doesn’t take place as decided, the increased tariff will come into effect. But, the US agrees to increase the deadline if they couldn’t come to a conclusion until March 1.