The main economic officials of the United States and China are about to meet in Geneva on Saturday for high challenges that could determine the fate of a world economy that was raised by President Trump’s trade war.
The meetings, which should continue on Sunday, will be the first since Mr. Trump reduced the rates on Chinese imports to 145% and China retaliated with its own 125% samples on American products. Tit-for-tat has effectively reduced trade between the world’s largest economies while increasing the possibility of global economic slowdown.
Although the issues of the meetings are high, the expectations for a breakthrough which leads to a significant reduction in the prices is low. It took weeks to China and the United States to even accept to speak, and many analysts expect this weekend’s discussions revolve around the determination of what each party wants and how negotiations could go ahead.
However, the fact that Beijing and Washington finally speak raised the hope that the tension between them could be defused and that the prices could ultimately be lowered. The impact of undulating samples from the global economy, redirecting supply chains and forcing companies to transmit additional costs to consumers.
Negotiations will be closely monitored by economists and investors, who fear that an American-Chinese economic war will lead to slower growth and higher prices in the world. Companies, in particular those that depend on Chinese imports, are also on alert on talks because they are content to face new taxes and uncertainty as to whether they will remain in place.
“The United States and China have solid economic and financial interests to defuse their commercial hostilities, but sustainable relaxation is hardly in sight,” said Eswar Prasad, former director of the Chinese division of the International Monetary Fund.
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