US Lays Down Trade Demands For China
In recent news, it has been revealed that the largest economy of the world, the United States, has laid down trade demands for another big economy, China. For those who don’t know, the US and China have been battling it out in a game of trades, where the US levied tariffs on China for the importation of steel and other goods, while on the other hand, China, in a retaliating move, decided to further levy tariffs on US products.
Things were not clear for two of the biggest economies of the world but it now seems that things are going in some direction as latest reports reveal that the US has laid down new trade demands for China. On Friday, both trade representatives of both countries entered in a 2nd day of trade discussions. The two economies have managed to come into terms with one another and reach a medium growth to avoid a full blown global trade war. Things were not looking too promising for the two economies but it seems like they might be finding a common ground now.
According to renowned economists in China, Lingling Wei, the US has asked China to decrease its trade surplus by a whopping $200 billion by the end of 2020. That is some time for the Chinese economy and government to get things right. Moreover, it is also being said that if China doesn’t agree to the conditions set out by the United States, the trade war will continue and the US will not shy away from imposing further trade tariffs on China.
According to the US, the Chinese economy is practicing unfair trade practices and this all is taking place in Beijing. US are not comfortable with the idea of China excelling on unfair grounds. US, therefore, wants to change things up. It also asked China to not target its farmers and agricultural products, amongst many other things that is said.
If China agrees to what the US is saying, the trade war could be averted but if not, both economies might be heading into a global trade war.