China welcomes Trump’s goodwill gesture of delaying the rise in tariffs
The People’s Republic of China has welcomed the announcement of President of United States (U.S.) – Donald Trump of delaying the increase in tariff on Chinese goods worth U.S. $ 250 billion.
Speaking to media, the Spokesperson for Ministry of Commerce, China – Gao Feng said, “We hope that China and the US can continue to meet each other half way and take practical steps to create a good environment for talks.”
Prior to this, on Wednesday, i.e., September 11, 2019, as a goodwill gesture, Trump postponed the tariff rise from 25% to 30% till October 15, 2019. These were earlier planned to increase from October 1, 2019. Trump said that the decision has been made at the request of Vice Premier of China – Liu He, as China is all set to celebrate its 70th anniversary on October 1, 2019.
Making the big announcement, Trump tweeted, “At the request of the Vice Premier of China, Liu He, and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollar’s worth of goods (25% to 30%), from October 1st to October 15th .”
At the request of the Vice Premier of China, Liu He, and due to the fact that the People's Republic of China will be celebrating their 70th Anniversary….
— Donald J. Trump (@realDonaldTrump) September 11, 2019
….on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th.
— Donald J. Trump (@realDonaldTrump) September 11, 2019
Trump’s announcement came after China unveiled a list of 16 U.S. items that were exempted from increased tariffs in China. This included anti-cancer drugs and lubricants, animal feed ingredients, whey and fish meal. Trump welcomed the move and reciprocated with the same gesture.
Besides, a high-level delegation is all set to visit Washington in October 2019, where Liu He would be meeting U.S. Trade Representative – Robert Lighthizer and the U.S. Secretary of Treasury – Steven Mnuchin. Prior to this, a deputy-level meeting will be held around mid-September 2019 to prepare the ground for the meaningful talks when both sides meet in October 2019.
The announcement also impacted the Asian and U.S. bourses positively. Today, i.e., September 12, 2019, China’s Shanghai Composite Index (SHCOMP) closed 0.8% higher. Japan’s Nikkei ended on 0.8% higher note. On the other hand, US market futures also rose. Dow (INDU) futures gained 67 points after hours, or 0.25%. S&P 500 (SPX) futures were up 0.2% while NASDAQ (COMP) futures increased 0.4%.
For the records, the trade war between China and the U.S. has not only hurt the businesses in the 2 nations but has also impacted the global economy. It is to be noted that both U.S. and China know that the trade war can push the global economy into recession. Despite being one of the fastest growing economy, China’s growth is forecasted to be less than 6% in the next year.
