Update⼁On November, 30 Donald Trump, President of the United States, and Xi Jinping, President of the People’s Republic of China, sat down and began discussing a temporary “cease-fire.” During a dinner at the G20 meeting in Buenos Aires, Argentina the world leaders struck a compromise. The United States will not go through with the planned tariff increases on $200 billion of Chinese goods. Instead, there will be a 90-day negotiation period. Additionally, if both countries cannot agree on terms by the end of this 90-day period then the US will enact the originally planned 25% tariffs.
Even though a tenuous agreement has been reached, the US and China both have different things to say about the same subject. Press Secretary Sarah Huckabee Sanders and Chinese Foreign Minister Wang Yi have both spoken at length about the truce. Their statements, however, further illustrate the differing views. Although the US announced a 90-day deadline, Chinese officials have not mentioned a deadline. China has stated that both leaders will visit the other country at specific times, but the United States has not released any information related to this. Furthermore, both sides released more statements that were not commented on by the opposing party. The statements made can be summarized as follows: The US uses a pinpoint, specific approach and China uses broader strokes.
Update⼁ The United States is keeping up on their tariffs on $250 billion worth of Chinese goods. However, China has decided on some concessions. China has decided to dial back on their “Made in China 2025” industrial plan. The plan aims to increase the number of Chinese goods used domestically. So, China has decided to buy more US oil thereby going back on the plan, albeit slightly. Additionally, China has cut tariffs on imports of automobiles from the United States down to 15% from 40%. This had lead to car manufacturers lowering their prices in Chinese factories. China has also made their first major purchase of US soybeans since the trade war first erupted. However, China has their economic policy-setting meeting on Dec. 19 to Dec. 21. This meeting will set the tone on the Chinese side of the trade war moving forward.