US Treasury Secretary Steven Mnuchin, trade representative Robert Lighthizer and China's top economic adviser Liu He have opened talks on a trade dispute between the two powers, according to sources. Mnuchin and Lighthizer reportedly wrote to Liu late last week with requests for concessions to help ease the strained relationship, and a Treasury spokesman says they have discussed the trade deficit and are "committed to continuing the dialogue to find a mutually agreeable way to reduce it.
I found this extremely relevant due to this topic directly affecting the health of our national stock markets. Trade solutions often positively correlate with market growth.
I found this extremely relevant due to this topic directly affecting the health of our national stock markets. Trade solutions often positively correlate with market growth.
https://www.wsj.com/articles/u-s-china-quietly-seek-trade-solutions-after-days-of-loud-threats-1522018524
2 comments:
I think this is really interesting, mostly because I haven't heard about it in the news in the past few days and I think this development is extremely important. Firstly, because it was predicted -- when the tariffs were announced and fears of a trade war increased, a lot of political analysts were arguing that the "tough talk" would just push both sides towards a diplomatic solution. And secondly, because the Trump administration has tried to claim that they are being tough on China, or in the case of Trump himself, that a trade war would be easy to win -- and yet, as predicted, the tough tariffs have led to a dialogue, something that has been done over and over again by multiple previous administrations. As you said, trade solutions often positively correlate with market growth -- except this positive solution hasn't been celebrated by those in charge -- if it was, we would be hearing about it a lot more.
I think my biggest worry with this however, is that diplomacy provides another possibility for the world to encounter miscommunications that too often occur between Trump and his administration. In something as tense as this trade relationship, I hope they get their messages straight while they're at the negotiation table.
I think it is interesting to note that despite the threat of a trade war developments are being made into coming up with trade solutions and easing the strained relationship between the US and China in terms of trade. Both sides need to negotiate balanced terms if they wish for a positive outlook economically in the future.
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