Little Progress Made In Shanghai Between China & U.S. Talks Will Be Ongoing
Trained negotiators from the U.S. and China engaged in talks to put an end to the trade wars between the two countries. The results of these negotiations will have a huge effect on U.S. farmers one way or the other.
The talks on Wednesday were quite brief with no notable progress made. The two sides have agreed to continue their talks in September, which some say that’s a positive sign. The two largest economies in the world, have agreed to a truce a year ago.
Some experts have voiced concern that the truce can end with no significant progress. They are worried that the truce can end with no agreements. This was a significant step, since it was the first time a face to face meeting took place since June. The June meeting consisted of President Trump and Chinese President Xi Jinping agreeing to talk again to end the dispute.
The White House & The Commerce Ministry Of China Would Not Elaborate On Wednesday’s Trade Talks
The only detail released about Wednesday’s meeting was that there was an attempt to move the progress along. However what exactly happened was not made clear, but insiders say that there was no real positive change.
Both countries have exercised huge taxes on goods from the other country, resulting in extreme market declines. Other negative effects have been a total disruption to the supply chain from the U.S. to China and back. The negative ending meetings on Wednesday raised concerns for a shaky global market.
Two anonymous sources with inside information on the meeting, said it was ‘about goodwill gestures.’ The U.S. Is stressing to China that they have already made commitments to purchase soybean, pork, ethanol and other products.
The U.S. Wants China to step up to the plate and start making those purchases. On the other side, Chinese negotiators want the U.S to lessen the restrictions on sales to Chinese giant telecommunications company Huawei.
The Source Also Indicated That In The Next Month Both Sides Are Expected To Take Action
According to the source both sides are expected to start making positive steps towards their end of the agreements. Indications suggest that if no action is taken by either side by September, that will be a very negative signal.
Both sides expect the other to make positive adjustments before the next meeting. Treasury Secretary Steve Mnuchin and US Trade Representative Robert Lightizer attended the Wednesday meeting in China. Neither would elaborate on the exact discussions that took place at the six hour meeting.
The meeting was classified as a ‘working dinner meeting’ at the historic Fairmont Peace hotel in Shanghai. The Chinese Ministry said ‘both sides had very effective meetings, highly constructive and deep discussions at about mutual trade subjects.’ The only thing that both Lightizer and Mnuchin would say, ‘is that both sides made promises to continue talking.’