President Donald Trump recently concluded that the US and China would resume talks over trade and business. More apparently, Trump is setting forth a u-turn in his past decisions against China and is also going back to Huawei’s good graces.
Economists and business owners awaited on outcomes resulting from the Group of 20 or G20 summit in Osaka, Japan this week as it held answers on how the on-going US-China trade wars would finally end.
In a series of tweets the president made yesterday, he indicated that he met with Chinese President Xi Jin Ping and said that he “had a great meeting with President Xi of China yesterday, far better than expected.”
Furthermore, he said that “importantly, we have opened up negotiations again with China as our relationship with them continues to be a very good one. The quality of the transaction is far more important to me than speed. I am in no hurry, but things look very good!”
So far, Trump has not dwelled into the specifics regarding the conversation that transpired between the two governments as both will still have to continue discussing the agreements. But according to him, the US is “winning, and we’re winning big because we have created an economy that is second to none,” the president said during a press conference during his visit to South Korea after the recently concluded G20 summit.
In the little details that he shared over Twitter, however, he said that he “agreed not to increase the already existing Tariffs that we charge China while we continue to negotiate.” Furthermore, during the negotiations, “there will be no reduction in the Tariffs currently being charged to China.”
In May, the president imposed 25% tariff charges on China’s exports from the US amounting to $200 billion, which began this month. He even said the his administration will add another $300 billion, which was supposedly going to be imposed this July.
In the light of the circumstance, China also decided to impose tariffs on over $60 billion on US goods. According to the list released by the Office of the United States Trade Representative, it included a large majority of imports from China. Bluntly, covering nearly all products that the U.S. buy
Consequently, tech companies like Apple shouldered the burden as most of the materials are sourced from China. Meanwhile, agricultural businesses suffered as most of their products were sent over to China, which had forced them to sell less.
In the latest news from the president, he said that “China has agreed that, during the negotiation, they will begin purchasing large amounts of agricultural product from our great Farmers.” But Bloomberg reported that Chinese official media reports only indicated that Trump hopes China will import more American goods as part of the trade-war truce.
Lastly, Trump also said that upon tech companies’ requests, ” President Xi and I agreed to allow Chinese company Huawei to buy products from them which will not impact our National Security.”
To which, Huawei responded with “U-turn? Donald Trump suggests he would allow #Huawei to once again purchase U.S. technology!”
Within the course of the last few months even from late last year, US and telecoms manufacturer, Huawei had been going back and forth as a consequence between US-China conflict.
In May, the US put a blacklist on all Huawei products on government offices and contracts as it posed as a national security threat because of its ties with the Chinese government who imposes its allegiance to cooperate upon request. Furthermore, Trump insisted that their technology had backdoors spyware that could tap into private and sensitive information, all of which Huawei denied.
Furthermore, Trump also mandated that US tech companies are banned from selling hardware to Huawei—who relies heavily on computer chips imported from companies like Intel and Micron. While Google supplied the company with its Android operating system on its smartphone devices.
Both US and Chinese companies took a blow from Trump’s ban, which led tech companies urging the president to retract his decision and let business resume as usual.
However, as Bloomberg reported, Trump’s u-turn on his decisions was a result of a “catastrophic mistake” as businesses have been largely affected and government mandates have been already placed.
Going forward, there are still some more to settle as negotiations between the two countries get settled. Possible ramifications regarding the economic status are to be expected, though.