After months of interruptions in trade talks between the United States and China, President Trump announced that there had been “substantial progress.” Such progress will lead to the U.S. postponing implementation of higher tariffs.
Originally, the U.S. planned on raising tariffs by $200 billion on Chinese imports as of March 2. According to a recent Forbes article, this would have amounted to a 25 percent increase.
Progress in trade negotiations bringing positive results
According to the South China Morning Post, there may soon be additional face-to-face negotiations between Trump and Chinese President Xi Jinping. This may lead to a summit between the two leaders taking place later in Florida. Trump stated that we should expect to hear some “very big new” concerning advances in trade negotiations over the next two weeks.
This news was good for Asian markets. According to one source, stocks prices in Asia made their greatest gains in the past three years.
Continued talks could bring even greater results in the near future. Said one director in the global equities market: “Should the talks conclude positively it will likely be received positively by global markets particularly those sectors and companies that are reliant on global trade; from Boeing and Apple in the US, global shipping companies, to semiconductor manufacturers in China.”
We do need to keep in mind that trade talks are not always predictable. Right when we sense a degree of optimism, further trade disputes may arise. Therefore, having an attorney who understands Chinese culture and legal issues can prove beneficial. There will likely be continual issues regarding forced technology transfers and other IP violations for American companies doing business in China. It’s best to understand how to deal with such issues before they arise and business investment in China takes place.