The long awaited talks between officials of United States and China are likely to happen next week as both nations have had tough time maintaining trade equilibrium after they imposed trade tariffs on each other. Both nations have imposed tariffs worth more than $300 billion and this is the first time that they are sitting down for a formal discussion to end the stalemate after their leaders agreed not to impose any more tariffs for 90 days at the G20 summit last year. Chinese commerce ministry has said that the goal of these talks which will be held on 7th and 8th January will help both nations implement a critical consensus.
The team of US representatives will be led by Jeffrey Gerrish said the ministry on its website. Though China had promised to purchase agricultural products and a few engineering goods after the meeting between both presidents it made only token purchases to show that it was keeping its side of the bargain. If the discussions between both nations does not end on an amicable note then the current rate of tariffs which is at 10 percent, will be increased to 25 percent warned President Trump. The trade war was initiated by President Trump on receiving complaints from trade bodies in US about unfair trade practices of Chinese manufacturers.
During his election he pledged to make trade fair for all and help American manufacturing industry strong enough to fight competition. The battle between both these superpowers had disrupted businesses that are related to their smooth relationship and has stoked fears about slowdown in global economy due to it. According to data from Institute for Supply Management the factory activity in US has slowed down beyond expectations during December while in China too their manufacturing activity showed contraction for the first time in last couple of years.