USA / CHINA: Trade deal broke down!

The first formal talks on the framework of an extended economic agreement between the first two world powers took place in Washington last July, but without major progress: the two delegations cancelled the press conferences scheduled at the end of the round table, a sign of « serious tensions and deep differences » According to some observers.

The « 100-day action plan » provided for the following measures:

• Beijing embargo lifted on US beef since 2003
• Acceleration of direct exports of U.S. natural gas to China
• Progressive opening of the Chinese market to US electronic payment system operators (Visa, Mastercard...)
• Accelerated approval by Chinese authorities of biotechnology and genetically modified organisms
• Reduction of US car taxes
• Lifting US barriers to Chinese pre-cooked poultry imports into the United States
• Access to more Chinese direct investment in the United States

At least one of these measures has been implemented: beef exports that have resumed since July, a measure already taken in September 2016...

Negotiations on U.S. natural gas are also expected to succeed, with China seeking to reduce its dependence on coal: a prospect that makes American industrialists, the major consumers of this fossil energy, fear a surge in the price.

On the sidelines of these pragmatic arrangements, the events of the last few weeks suggest a trade war between the United States and China.

The US President said he was ready to launch a procedure on China's intellectual property practices... It's an advertisement that is obviously not well received by China!

An investigation should be initiated at the request of the U.S. President, which could last several months and lead, if suspicions are found of retaliation by the WTO.
This procedure will be in addition to the others already in progress on steel or aluminium accused of being subsidized by the Chinese authorities.

These frictions add to the strong political tensions between the two Powers over North Korea.

This trade agreement, which seemed very promising, was announced only a few days after the Chinese President's visit to the United States: a new volte-face which the US President secretly, but whose potential repercussions might be harmful to international trade...

source: lefigaro.fr / lepoint.fr