USA and China agree not to impose new tariffs since January 1,

A commitment that does not stop the dispute, but gains time. China and the united States have come up this Saturday to an agreement to not impose new tariffs from the 1st of January. The president of the asian giant, Xi Jinping, and the of american power, Donald Trump, have committed to continue negotiations to seek a solution to the trade war between the two largest economic blocks worldwide, as reported by the state media chinese and the White House. But the engagement is strictly temporary -90 days— and does not include any measure of foundation.

The pact was reached in a meeting of two and a half hours that the two leaders took place in Buenos Aires after the closing of the G20 summit and has become the only news of the draft of the last day of the appointment of buenos aires. Until the announcement, painted bastos on the edge of the commercial summit: the document of conclusions of the meeting of heads of State and Government of the 20 largest economies of the world, the leaders had recognized the "problems of the trade" world and had failed —by the will of the united STATES— condemning the protectionism, one of the hallmarks of the Administration's Trump. The text was recognized, moreover, that the multilateral trade agenda had "failed in their objectives" and highlighted the need of reforming the World Trade Organization (WTO).

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Washington went a step further in his charge against China: reported that the meeting between Trump and the argentine president, Mauricio Macri, had concentrated on "economic activity predatory china." He had been in a brief statement signed by the spokesperson of Trump, Sarah Sanders. But the word "predatory" ("predatory Chinese economic activity", was the full text in English) fell like a bomb in the host country, which expected that Buenos Aires was the venue for both countries to sign the pipe of peace or, at least, to depart their differences. In the end ended up being as well thanks to the bilateral meeting last time.

Tariff of 10%

In statements to the media in the capital of argentina, the chinese vice-minister of Commerce Wang Shouwen said that existing tariffs will continue at the 10%, and no tariffs will be imposed to new products. Both parties will continue negotiations to find a solution to remove these liens. If so then they have not managed to find a consensus, the tariffs will rise up to 25%, the rate that was expected to Jestbahis enter into force from 1 January.

In a statement, the White House confirmed the cease-fire agreement. According to Washington, Beijing will buy “an amount not yet determined, but very substantial, agricultural products, energy, industrial, and others to the united States to reduce the trade imbalance between our two countries”. In the case of agricultural products —one of the objectives pursued by the american power— the shopping will begin immediately. Trump and Xi, according to the White House, “have agreed to immediately begin negotiations on structural changes with respect to the transfer forced technology, intellectual property protection, non-tariff barriers, piracy and intrusion of computer, services and agriculture”.

The objective is that these negotiations have managed to close an agreement within 90 days. “If at the end of this period the parties are unable to reach an agreement, the rates are at 10% will rise to 25%”, confirms the statement of the us. Before the meeting with Xi in Buenos Aires, Trump threatened to raise to 25% by 1 January the tariffs of the 10% that is now imposed by the U.S. on 200,000 millions of dollars of chinese products. That step was concerned not only in China, but all over the world: it would have been a giant step of incalculable consequences in the escalation between the two greatest powers of the globe. The financial markets should breathe a little more quiet next Monday.

Included in the talks between Xi and Trump, has revealed the White House is an agreement by which China, “in a wonderful humanitarian gesture” shall mean the fentanyl as a controlled substance and punished “with the largest penalty in accordance with the law” to those who sell this substance to the united STATES. Fentanyl is a painkiller 50 to 100 times more potent than morphine, whose use has been linked to the growth of deaths from opioid overdose in the united STATES. This substance enters the country mainly by the traffic of groups of gangsters in China and Mexico.

The chinese minister of Foreign affairs, Wang Yi, confirmed in a press conference that Beijing has agreed to buy more american goods to help reduce the imbalance in the trade balance. The minister described the conversation between Xi and Trump as “friendly and sincere”. Both, according to Wang, it is agreed that China and the U.S. “can and should” guarantee the success of your relationships.