The warming of trade talks between China and the USA

The Chinese government in its statement announced that it will extend the suspension of retaliatory tariffs on American cars. This has been taken away as a step towards the warming of trade talks between the two countries (read: Data from China does not help copper. Trade conflict in the background).

Renewed trade negotiations are expected to resume next week. For now, the markets are calm before the next series of talks, although the President of China himself stressed that the prolonged trade negotiations introduce uncertainty in the Chinese and American markets, which in the long run may have negative economic effects.

Temporary removal of 25% of the tariff

The Ministry of Finance announced an extension of the suspension on Sunday without specifying a specific end date. The 25-percent tariff imposed on vehicles imported from the United States has again been suspended. In addition, Beijing decided to honor the promise made by President Xi Jinping to President Donald Trump during a December meeting in Argentina. It was decided to add fentanyl (a narcotic medical substance) to the list of controlled substances in the category of non-medical narcotic drugs and psychotropic substances. All delicate gestures from China try to keep the talks going. The continuous suspension of car tariffs is primarily aimed at "creating a good atmosphere for China and the US. Economic and trade talks "and is a" positive response "to the US decision to postpone increases in import taxes, the Ministry of Finance said in a statement.

A new look at old conversations

The US is exerting increasing pressure to sign the agreement. Therefore, both sides are gathering strong arguments, trying to ease the current tensions in two huge world economies. In a rather interesting way, the situation was commented by a senior employee of the China International Trade Association in Beijing who said that "China exercised a great deal of restraint and did everything in their power in connection with recent moves compared to the US, which only considered suspending some tariffs.".

China primarily wants to maintain the good condition of their economy. Therefore, they are constantly trying to build a bridge to conduct negotiations in such a way as to build not only better communication with the US, but above all, stabilize market pressures. According to Chinese analysts, it is difficult to talk about the direct impact of talks on the stock exchange, although in the near future uncertainty built on negotiations may "Break" pouring into the market a wave of supply.