Earlier this year, threats of a trade war had surfaced as President Trump insisted on increasing the import tariffs for steel and aluminum imports. In retaliation, China had also threatened to raise the import tariffs on several goods coming in from America. After flailing economic and political conditions, the world's largest economies have come to an agreement where they have agreed to drop the tariffs and instead, work on a better trade agreement. This, in turn, has held off any threats of a possible trade war.
China and U.S. negotiate trade agreements
The agreement was made with Chinese officials earlier this week and negotiators set up a framework to accommodate and account for any trade imbalances that may occur now or in the future.
Both the economies are now trying hard to get ahead with the implementation of the framework. During the meeting, discussions were held about how China would import commodities from the agricultural and energy sector from the U.S. The move will be crucial in settling the $335 billion annual U.S. trade deficit back in China.
Washington has also further demanded that China reduce the trade surplus in the country by a figure of $200 million. The figure was not, however, cited in the agreement made this week.
Trade officials in the U.S. have said that the move to get China to open its markets to the U.S. goods is highly significant, not just for trade purposes but also to issues such as cybertheft to be properly dealt with and resolved.
The structural change is necessary for protecting the millions of jobs that are at stake in America at the present moment.
Trump critics feel that the move to settle trade is simply ignoring the larger issues that are out there. They fear that the President of China will not take the promised action against cybercrime, technology theft, and intellectual property. This could mean a big loss for America.
Critics fear that down the road, all the details will be scattered and the broader issues will remain unaddressed.
The negotiators of the policies, however, feel that the agreement is for the best of both countries. In fact, America is now looking at and expecting an increase between 35 percent to 40 percent in the export of agricultural commodities to China.