Ahead of Chinese Vice Premier Liu's visit to the United States for the next round of negotiations on the trade deal, US President Donald Trump said that there is a good possibility of a deal with China. As the two largest trading powers are trying to end the biggest trade war in history, the White House has announced that the negotiations will happen on October 10. The American side will be represented by Robert Lighthizer, the US Trade Representative and Secretary of Treasury Steven Mnuchin and the Chinese delegation will be led by Vice Premier Liu, whom China denotes as the best negotiator.
The White House announced that the topics of discussion will force technology transfer, intellectual property rights, services, non-tariff barriers, agriculture, and enforcement. While responding to the questions by reporters on October 7, Donald Trump said that he has achieved the desired results by imposing heavy tariffs on Chinese goods. The US leader also believes that there is a good possibility of having a trade deal with China.
“We’ve taken in tremendous amounts of money in the form of tariffs from China. China has eaten the cost of those tariffs because they’ve devalued their currency and they’ve also pumped a lot of money into their system. We have no inflation. If anything, it’s going below the number so, therefore, we’re entitled to an interest rate cut," he said.
According to President Trump, as a result of his policies, the Chinese economy is down and is now at nearly $22 or $24 million. This is the reason that China wants to have a trade deal with Washington. Both powers have been trying to negotiate a trade deal for nearly more than 10 months. The massive trade imbalance created by tariffs by both countries climbed to more than $539 billion last year. Donald Trump wants China to address the issue of theft of intellectual properties of American companies and also their forces coercion inside China.
He said, “As to whether or not we make a deal, I don’t know. But there’s certainly a good possibility. But the relationship is a very good one. We have taken in billions of dollars. They’re down three and a half million jobs since we started doing what we do. Their supply chain is really cracked and broken. They want to make a deal.”
(With PTI inputs)