In what Wall Street Journal considers being a “spiraling dispute“, China and the United States have decided to resume talks.
Negotiations are planned to resume between the two superpowers after a monthlong back-and-forth.
Today marks the starts of six days of hearings, where 370 witnesses are expected to share their opinions on the pros and cons of additional tariffs on more than $200 billion of Chinese products.
Hearings are set to start today
The “trade war” between China and the United States show-like conflict seems to have just released its latest ‘episode’, after what seemed to become a two-way business conflict.
So far, 359 people were confirmed to testify in front of the official U.S. Trade Representative’s office this week. They mostly are trade leaders from private companies, including the biggest manufacturers. They will likely play a key role in weighing in the importance of this additional tariff.
The Chinese government expressed its gratitude towards the American government for doubling the length of those hearings, bringing them from three to six days in total.
Chinese officials declared in an official press statement that: « dialogue and communication are crucial for reciprocity, equality and integrity ».
As a reminder, those new sanctions were considered after China retaliated with a 25 percent tariffs for American imported products a few weeks ago. That is the same percentage the United States have applied on Chinese products.
A Chinese mediator in D.C
China has already drafted a plan B in case those hearings do not unfold satisfying results. The Asian leader announced over the weekend that an official mediator will come to the White House in a few days.
On Wednesday and Thursday this week, Chinese vice minister of finance, Liao Min, is expected to fly to the United States and meet with David R. Malpass, the American under secretary for international affairs at the Treasury Department.
Lao Min, the vice minister of finance in China is also travelling to Washington this week, in order to ease the negotiations.
The broad list of consumer goods that are subjected to the tariffs include tires, pet food, bicycles, baseball, but also furniture and lightings.
Experts are worried that prices will increase for daily consumer products and therefore plumet the American economy.
The E.U will attend D.C meetings
And while China worries for its economy, so does a whole continent too: Europe is also worried about tariffs against its products.
A few month ago, Donald Trump announced an increase of 25 percent on average on imports of steel, aluminium, solar panels and washing machines coming from the Old Continent.
This week, European officials are set to attend separate trade meeting at the White House to discuss with the Trump administration, as they hope to amend heavy trade tariffs. Canada and Mexico are also subjected to those new tariffs, but have not announced any negotiation round so far.