Wednesday, 18 December 2019 00:00

US-China Trade War Settlement

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Entering the last days of 2019, the world received encouraging news about the United States-China trade war. US President Donald Trump claimed there had been an agreement with China. Trump's remarks can be a good sign of easing tensions between the two big nations which have been fighting in a trade war for 18 months. The United States and China, as Donald Trump stated, have agreed to make agreements in the field of energy and other manufacturing goods and cancel the penalty rate. Although the two sides have not yet officially signed the completion of the trade war, various positive comments have emerged. From Beijing, Chinese Deputy Trade Minister Wang Shouwen stated that his country would import more wheat, corn and rice from the United States. United States government trustee Robert Emmet Lightizer told Reuters news agency that China would buy US $ 32 billion worth of agricultural products in the next two years. Trump's and government officials in Beijing’s statements, became a strong signal about the decrease in tension between Beijing and Washington. Indeed this is only a sign, because until Wednesday 18 December 2019 there has been no confirmation of the signing of an official agreement by the two countries.

After all, what is developing between the United States and China, although not yet official, can be said to be the first phase of a trade agreement between the two countries. In order for the trade war to truly end, further agreement is needed. Hopes for the next phase emerged from Donald Trump's tweet on his Twitter account. Washington asks Beijing to buy more US agricultural products for further negotiations. This means that there will be a further stage, before the United States China trade war is really over. What policies to be carried out by the two countries, of course, still have to be waited for. Both Washington and Beijing must still discuss agreements on intellectual property, financial services and technology. Especially with regard to intellectual property right, it is a sensitive matter that must be discussed carefully.

During this first phase, it is very likely that new surprises will emerge that could have an impact on the global economy. In this perspective, it cannot be denied that the role of these two big countries in the global trade economy is very significant. Developing countries with a medium economic level must continue to be vigilant and fix their respective economic fundamentals.

 

Read 234 times Last modified on Thursday, 19 December 2019 13:29