Possible Extension for Trade With China

Possible Extension for Trade with China

Continued trade talks between the United States and China, referred to by some as critical “powerhouse trade countries,” are moving forward. President Trump seems pleased with how the talks have been progressing. So pleased, in fact, that he has stated he will graciously consider an extension if talks continue to go well in Washington. Here’s what you need to know about this unfolding situation.

Highlights

  • Prior to this extension consideration, as of March 1st there was to be an increase in the importation of Chinese goods. If both sides can come closer to an agreement, the extension could be extended another month or two past the original date.
  • Trump is working to get this trade deal with China secured. He wants all issues to be worked out as quickly as possible without compromising the US, all while avoiding a tariff war. He said, “Trade with China — how big does that get? It must be the biggest deal in history.”
  • Some of the hot topics being discussed during these intense talks are agriculture, currency, technology, non-tariff barriers, Chinese purchases of US goods. But the main topic remains intellectual property rights.
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  • These talks began because Washington was and still is upset with China. The US would like to raise imports by 10-25 percent. This is due to the fact that China has a rule in place that foreign firms need to give up their technology for access to the Chinese markets. The US believes this is a breach of their basic rights and claim the rule is also used to leverage an advantage over our rivals.
  • If these trade talks have the outcome President Trump wants, it will have a positive impact on the United States and possibly help boost the economy.