The United States and China are upping the tempo to calm nerves in efforts to avert a possible global spillover of their trade drama, a strong indication that both parties are growing tired of the situation.
In the last weeks, both US President Donald Trump and Chinese leaders extended gestures of economic diplomacy, setting aside taxes and delisting certain goods from the list. Beijing announced a deferment in new taxes, as the White House responded by suspending planned tariffs by two weeks.
Chinese commerce ministers on Monday pointed out that not only would the government exclude US pork, soybeans, and other farm goods from the new tax measure, but a number of Chinese firms have also decided to purchase 10 deliveries of American soybeans, Reuters reported. This would be the biggest buyer of US soybeans from private commercial establishments in over 12 months, Reuters said.
China's equity sector has made considerable gains last week as both Beijing and Washington sought to ease frictions that are fanning negativity for the world's most powerful economies. Adding to its burdens, China faces a pork shortfall dilemma that is currently pushing up prices in the market.
Chinese businessmen are becoming more worried about rising prices are seen to affect in some ways the country's celebration of the 70th anniversary of the founding of the People's Republic of China on Oct. 1. The state looks to import 2 million tons of agri products for this year, a huge portion of which would be infused to government reserves, sources said.
Trump's trade advisers have discussed extending a limited trade deal with their Chinese counterparts that would effectively roll back selected tariffs in exchange for Beijing's efforts on agricultural acquisitions and concerns on intellectual property. Representatives from both parties are scheduled for a meeting in the coming days.
In a strong indication of an improving atmosphere of trade, Chua Bin, Maybank economist, said that "The ice is thawing," referring to Beijing's reciprocity to the US' benevolent actions that analysts say will set in motion for further amicable talks.
As a matter of fact, Trump's political and economic experts are now scrambling to find an "escape hatch" from the looming tax increase this coming October until December. The risk, politically and economically, for Trump as he braces for another term in the coming 2020 polls, bears so much weight as the days go by, The Politico reported.