• News
  • Sport
  • TV
  • Radio
  • Education
  • TV Licences
  • Contact Us
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION
No Result
View All Result
1
Home World

US, China grant trade concessions as fresh talks loom

12 September 2019, 10:50 AM  |
Reuters Reuters |  @SABCNews
Containers are seen at the Yangshan Deep Water Port in Shanghai, China.

Stock markets in Asia rose on the news in early Thursday trade, as the concessions came days ahead of a planned meeting aimed at defusing the escalating trade war between the world’s two largest economies

Containers are seen at the Yangshan Deep Water Port in Shanghai, China.

Image: Reuters

Stock markets in Asia rose on the news in early Thursday trade, as the concessions came days ahead of a planned meeting aimed at defusing the escalating trade war between the world’s two largest economies

US President Donald Trump on Wednesday welcomed China’s decision to exempt some US anti-cancer drugs and other goods from its tariffs and announced a short delay to scheduled tariff hikes on billions worth of Chinese goods.

Stock markets in Asia rose on the news in early Thursday trade, as the concessions came days ahead of a planned meeting aimed at defusing the escalating trade war between the world’s two largest economies.

China’s decision to exempt some US goods was a “big move” by Beijing and a positive gesture before trade negotiators from both countries meet in Washington, Trump told reporters at the White House.

China on Wednesday announced its first batch of tariff exemptions for 16 types of US products, including some anti-cancer drugs and lubricants, as well as animal feed ingredients whey and fish meal, according to a Ministry of Finance statement on its website.

“They made a couple of moves … that were pretty good,” Trump said at an unrelated event on vaping. “I think it was a gesture, okay? But it was a big move.”

On Wednesday, Trump wrote in a post on Twitter that the United States had agreed to delay increasing tariffs on $250 billion worth of Chinese imports from October 1 to October 15 “as a gesture of good will.” The tariffs were set to increase to 30% from 25% on the goods.

Trump said he hoped to reach a trade agreement with China following more than a year of tit-for-tat exchanges of tariffs that have roiled global markets.

“I deal with them and I know them and I like them,” he said. “I hope we can do something.”

Asian stocks rose on Thursday, while China’s yuan currency was also up 0.27 percent in offshore trade, as investors hoped for a thaw in US-China trade frictions.

Deputy trade negotiators are due to meet in Washington in mid-September, with minister-level talks to follow in October. Exact dates for the meetings have not been released.

The gestures may ease tensions ahead of the negotiations, but some analysts don’t see it as a signal that both sides are readying a deal.

“The exemption could be seen as a gesture of sincerity towards the US ahead of negotiations in October but is probably more a means of supporting the economy,” ING’s Greater China economist Iris Pang wrote in a note.

“There are still many uncertainties in the coming trade talks. An exemption list of just 16 items will not change China’s stance,” she said.

Indeed, the exempted list pales in comparison to over 5 000 types of US products that are already subject to China’s additional tariffs. Moreover, major US imports, such as soybeans and pork, are still subject to hefty additional duties, as China has ramped up imports from Brazil and other supplying countries.

Beijing has said it would work on exempting some US products from tariffs if they are not easily substituted from elsewhere. The United States is by far China’s largest supplier of whey, which is an important ingredient in piglet feed and difficult to source in large volumes from elsewhere.

Analysts say that with its duties on soybeans and US-made cars, China is taking aim at a key political support base of Trump, mainly the factories and farms across the Midwest and South at a time of receding momentum in the world’s top economy.

China has imposed several rounds of duties on US goods in retaliation against US Section 301 tariffs, beginning last year in July and August with a 25% levy on about $50 billion of US imports.

In all, the United States and China have slapped tariffs on hundreds of billions of dollars’ worth of goods in a bitter trade war that has raised the spectre of a global recession, with further tariffs slated to take effect in coming months.

The items on the two tariff exemption lists – posted on the ministry’s website – will not be subject to additional duties imposed by China on US goods “as countermeasures to US Section 301 measures,” the ministry said in its statement.

The exemption will take effect on September 17 and be valid for a year through to September 16, 2020, it said. Beijing said in May that it would start a waiver program, amid growing worries over the cost of the protracted trade war on its already slowing economy.

ING’s Pang noted the United States had also exempted imports of 110 Chinese products from tariffs in July, including high-value items such as medical equipment and parts.

TALKS

Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to meet in early October in the US capital, but key officials are tamping down expectations for a major accord.

For two years, the Trump administration has sought to pressure China to make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access.

Beijing and Washington were close to a deal last spring but US officials said China backed away from an agreed text over a reluctance to change laws to address US complaints.

The South China Morning Post reported, citing an unidentified source, that China was expected to buy more agricultural products in hopes of a better trade deal with the United States.

Senior White House adviser Peter Navarro this week urged investors, businesses and the public to be patient about the trade dispute.

Earlier on Wednesday, a survey by a prominent American business association showed the trade dispute was souring the profit and investment outlook for US companies operating in the world’s second-biggest economy.

Share article
Tags: Trade talksUSChinaMarkets
Previous Post

Geena Davis says Hollywood gender imbalance is an ’embarrassment’

Next Post

SA sees increase in 2018/2019 crime rate

Related Posts

Image of iconic statue in the capital of Brazil, Rio de Janeiro.

Thirteen die in Brazil after attempts to arrest gang leader

24 March 2023, 6:46 AM
People hold Israeli flags during a protest against Israel's Prime Minister Benjamin Netanyahu's new right-wing coalition and its proposed judicial changes to reduce powers of the Supreme Court in Tel Aviv, Israel February 18, 2023.

Thousands of anti-reform protestors seen in Israel’s ultra-orthodox city

24 March 2023, 5:44 AM
People hold pride flags during the Gay Pride parade.

Uganda faces huge pressure not to sign into law anti-homosexuality bill

23 March 2023, 9:00 PM
Russian President Vladimir Putin

VIDEO: Vladimir Putin must be allowed to attend BRICS Summit, says Malema

23 March 2023, 8:26 PM
[File Image] : Director General of the World Health Organisation (WHO) Dr. Tedros Adhanom Ghebreyesus

Elon Musk, WHO spar on Twitter over U.N. agency’s role

23 March 2023, 5:53 PM
Workers on strike hold CGT labour union flags as they walk on railway tracks to block a TGV high speed train during a demonstration at the train station on the eve of the ninth day of national strike and protests, and after the pension reform was adopted as the French Parliament rejected two motions of no-confidence against the government, in Nice, France, March 22, 2023. REUTERS/Eric Gaillard

Protesters, police clash across France in day of strife over Macron’s pension changes

23 March 2023, 4:19 PM
Next Post
Police Minister Bheki Cele briefed Parliament's Portfolio Committee

SA sees increase in 2018/2019 crime rate

Most Viewed

  • 24hrs
  • Week
  • Month
  • UPDATE | Court hears evidence regarding Zuma’s medical records
  • Unions set the record refute wage settlement agreement reports
  • SABC News crew attacked on N2 while monitoring protests
  • BREAKING | EFF members arrested after clashes with police in Braamfontein Sunday night
  • Police making progress in AKA’s murder case
  • Corporates prepare for a possible national blackout
  • UPDATE | Court hears evidence regarding Zuma’s medical records
  • Unions set the record refute wage settlement agreement reports
  • SABC News crew attacked on N2 while monitoring protests
  • Wits SRC sued
  • ‘Any attempt to arrest Putin would be declaration of war on Russia’
  • VIDEO: Vladimir Putin must be allowed to attend BRICS Summit, says Malema
  • VIDEO: EFF media briefing following March 20 national shutdown
  • Five killed in oThongathi shooting
  • Koko accuses state of delaying tactics in his corruption case

LATEST

LGBTQIA+ Flag flying
  • Africa

UNHCR slams Uganda’s anti-homosexuality bill


[File Image] : Argentina's Lionel Messi celebrates scoring a second goal with teammates
  • Sport

Messi leads Argentina win over Panama in first game as world champions


FILE PHOTO: Russian President Vladimir Putin attends a meeting with Chinese President Xi Jinping in Beijing, China February 4, 2022.
  • Opinion

China, Russia, nail their colours to the mast


FILE PHOTO: Representations of virtual cryptocurrencies are seen in this illustration taken November 28, 2021.
  • Business

Crypto entrepreneur Do Kwon indicted in US following Montenegro arrest


Former Mayco member Malusi Booi
  • Politics

GOOD Party welcomes Malusi Booi’s dismissal


Russian President Vladimir Putin delivers a speech during a meeting of the Council of Legislators at the Federal Assembly in Saint Petersburg, Russia April 27, 2022.
  • Politics

DIRCO awaiting legal opinion before extending an invite to Putin


Weather

  • About the SABC
  • Contact Us
  • Jobs
  • Advertise
  • Disclaimer
  • Site Map

SABC © 2023

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION

© 2023

Previous Geena Davis says Hollywood gender imbalance is an ’embarrassment’
Next SA sees increase in 2018/2019 crime rate