Trade conflict
US and China are looking for communication in the customs dispute
With tariffs well over 100 percent, trade between the largest economies is likely to come to a standstill. Both sides want to prevent that. And are looking for an approximation.
A few weeks after the escalation in the customs dispute between the USA and China, the first talks at the ministerial level to settle the tensions started in Geneva. The enormous tariffs between the two largest economies in the world have sustainable effects on world trade and threaten to affect global economic growth.
The talks have US finance minister Scott Bessent and the Chinese Vice Prime Minister He Lifeng. The US trade officer Jamieson Greer was also in Geneva. There were two rounds of talks on Saturday, as announced from delegation circles. A sequel was planned for Sunday. No side gave information about the content.
In Geneva there is also the world trade organization (WTO), in which several countries have announced complaints against the US tariffs, including the European Union. They argue that the surcharges violate WTO rules. Should the global economy crash into two rival -blocks, a decline in the global real gross domestic product by seven percent in the long term, warned the WTO. Above all, this would have devastating consequences for developing and emerging countries.
US President Donald Trump accuses China of unfair trade practices and, after taking office, has screwed up the tariffs to Chinese goods to 145 percent. China reacted to US goods with counter-tariffs of 125 percent. So far, both countries have tried to give the impression that they sit on the longer lever and do not have to take the first step towards the other.
Trump said several times that China had asked for negotiations, but the Chinese government emphasized that Washington had approached Beijing to start discussions. On Friday, Trump brought the US tariff back to 80 percent on his own social media channel.
China had reported an 8.1 percent export increase on Friday for April, especially thanks to stronger shops with countries in Southeast Asia. From January to April, the trade in the Southeast Asian community (ASEAN) rose by 9.2 percent on a Yen-based basis, while he declined by 2.1 percent with the United States.
An approximation is in the mutual interest, Bessent said in advance in a television interview. An agreement is not to be expected in Geneva, rather an understanding of topics that would have to be discussed. China emphasized that one could only negotiate at eye level. The United States would have to correct its mistakes.
Notification of the US Ministry of Trade, English communication by the Chinese Ministry of Commerce, Chinese
dpa
Source: Stern
