The International Monetary Fund (IMF) said the agreement to lift the tax to reduce US-China tensions could help the agency readjust its growth forecast.
China is hoping that the agreement will be able to end the war between the two countries, when the 'billion-nation' agrees with Washington to withdraw many taxes.
This outlook helped the stock market soar, and made the IMF comment that an agreement to reduce trade tensions between the US and China could help the agency adjust its global growth forecast. in 2020.
A spokesman for China's Ministry of Commerce on 7 November said the move by the two economic powers to lift tariffs on each other's imports "as a step towards an agreement". In addition, Beijing is considering lifting barriers to import poultry from the US.
|Chinese Ministry of Commerce spokesman Gao Feng. Photo: THX|
“In the past two weeks, negotiators have had serious and constructive discussions, and agreed to lift tariffs in installments as a step toward agreement. If the US-China reaches an 'step 1 agreement', both sides should lift the existing tariffs at the same level, ”the Guardian quoted Cao Phong spokesman as saying.
According to the newspaper, Beijing is seeking to lift tariffs on $ 360 billion worth of goods it imports, including items such as meat, clothing and electronics, before Chinese President Xi Jinping agreed to sign a 'partial' trade agreement with US President Donald Trump.
In addition, Chinese negotiators also want Mr. Trump to reduce tariffs on $ 110 billion of goods it exports to the United States, which came into effect in September, while reducing a 25% tax on goods. worth 250 billion USD last year.
The stock market jumped, as investors noticed the 'thawing' in the relationship between the world's two leading economic powers.
"There are still many barriers to overcome, but it is encouraging that Chinese negotiators are sending positive signals, and so is the US side," said global trade analyst Raoul Leering of Investment Bank of ING said.
|China wants the US to reduce 25% tax on goods it exports. Photo: THX|
However, he still expressed concern about the progress of the dialogue process between the two sides can be achieved in the coming months. With tariff pressure, the U.S. will seek a broader concession, as it will force China to protect American corporations from intellectual property theft, as well as unfair competition. .
Mr. Leering said that Beijing's requirements in the next step (agreement in step 2) relate to the further removal of US import tariffs, and this will make the agreement vulnerable. . "If the US only sees the provisional agreement as no more than the first step towards a 'step 2 agreement', with the aim of solving more thorny issues, then they will want to continue to maintain pressure," Mr. Leering said.
He also said that many hardliners in the White House and the US Congress believe that without significant tariffs, China's willingness to cooperate to solve more difficult issues, reducing state subsidies, forcing technology transfer and using subsidies to 'conquer' many global technology markets, will only take place for a short time.
"But anyway, we hope the 'step 1 agreement' will be implemented soon, and this means that everything is going in the right direction," the Guardian quoted Mr. Leering as concluding.