News regarding US-China trade negotiations are generally positive. Trump scheduled to meet Chines Vice Premier Liu He at 2030 GMT today (Thursday). WSJ reported that there might even be an announcement of a Trump-Xi summit during the meeting. Bloomberg reported that the draft agreement would give China six years, until 2025, to meet the commitments.
According to unnamed source, under agreement, China pledged to buy more US commodities including soybeans and energy products. Also 100% US owned companies would be allowed to operate in the country. Failure to fulfil these binding commitments would trigger retaliation from the US. There are also some non-binding pledges from China too, which would be implemented by 2029.
However, there is little news regarding how to hand the punitive and retaliation tariffs imposed since last year. Trump previously warned they are necessary “for a substantial period of time” for China’s history on missing promises.
Separately White House Economic Adviser Larry Kudlow said “We’re covering issues that have never really been covered before, including enforcement”. And, “al making good progress, all making good headway, but we’re not there yet… we hope this week to get closer.” Kudlow also said Liu will remain in Washington for three days and possibly longer.
