Upset and astonished by cnbc.com/video/2019/10/09/beijing-lowers-expectations-for-trade-talks-after-blacklisting-of-chinese-firms-reuters.html, China has decided to lower expectations for any significant progress on trade talks with the US. There were scheduled trade talks this week between the Chinese and the United States government where leaders would deliberate on how to ease tensions between the two countries. Just this week, President Donald Trump expressed optimism for fresh trade talks with President Xi.
Theoretically, Beijing expresses optimism to end the trade wars. However, Chinese officials have noted that they are not optimistic about the scope or size of any deal with the United States in the short term. Top Chinese and the US economic intellectuals will have a scheduled meeting in Washington on Thursday and Friday.
Both parties will attempt to put an end to the fifteen-month trade war that has caused a disruption of the global financial order. The war has consistently threatened to upend the old trade systems. Robert Lighthizer, the United States trade representative, Steven Mnuchin, the Treasury Secretary, and the Chinese Vice Premier Liu, will all take part in the negotiations.
Without any sign of progress, President Donald Trump is set to increase tariffs on $250 billion Chinese goods from 25% to 30%. Addressing the media in Washington, Trump said that a deal was in progress. He gave a positive nod that there was a high chance that the deal would be sealed. President Donald Trump added that Beijing wanted to see the deal settled more than he did. Currently, judging on the situation, there was a possibility of talks between two economies that control global commerce. However, the talks are likely to end in a deadlock. One Chinese official gave a brief for preparations for the talks to end in anonymity.
The official went on to note that there was a probability of both parties reaching an agreement, but it would not be an easy task. The talks will require plenty of planning and building consensus on both economies. For trade relations to improve between the two nations, more time was required. Previous low levels talks held between the two economies created a platform for fresh talks in the upcoming meeting. However, the latest action by Washington of blacklisting 28 Chinese organizations has stirred a very negative atmosphere.
HiKvision and twenty-seven other Chinese companies were blacklisted a few days before the new trade talks. The US commerce department took action to ban the artificial and technology organization from conducting business with US companies.