All eyes on US-China trade talks

This is the first round of face-to-face negotiations since both sides agreed to a 90-day truce at the last G20 meeting.

News ID: 80325

Date: 05 January 2019 - 10:11

Talks to begin after technology and agriculture players in the US incurred billions in damages; China manufacturing volume also shrank for the first time in 19 months

TRADE officials from the US and China will sit down next week in Beijing for their first face-to-face negotiations since the start of a 90-day truce in a months-long trade row last month.

US President Donald Trump and his Chinese counterpart, Xi Jinping agreed to the temporary ceasefire in the tit-for-tat salvo of tariff hikes on December 1 on the sidelines of the G20 summit in Argentina.

The truce was called after both sides imposed tariffs on more than $300bn worth of imports from each other.

US President Donald Trump had threatened to raise tariffs on more Chinese goods, but this was postponed along with the agreed ceasefire.

Reports suggested that the technology and agriculture sectors in the US have lost billions owing to the trade dispute.

Apple lowered its revenue outlook earlier this week, citing concerns over the trade spat affecting China’s economy.

Also at risk is the bilateral soyabean trade as China’s imports from the US fell to zero for the first-time ever in November.

China, on the other hand, suffered from a contraction of its manufacturing volume in December, its first in 19 months.

This came after inventories piled up in the US as shippers rushed to import goods from China ahead of the then-expected new round of tariff hikes at the start of the new year.

Shippers will be looking for signs from this meeting about the state of future trade relations before making any decisions on further restocking of Chinese goods.