On Wednesday, the White House and the Chinese government lowered its high mutual rates for 90 days. According to US President Donald Trump, there is already a concept for a “very, very strong” trade agreement. The “most exciting part” is the opening of China for the American economy.
The US president initially did not provide any details. “We have the framework for a very, very strong deal with China,” Trump said in an interview with the Omroep Fox News. Trump followed a hard trade policy on January 20, which shaken the global supply chains on January 20. He threatened extra rates against countless states, sometimes imposed them on – and took many of them back.
Most import from China recently increased 145 percent inches, the People’s Republic responded to American goods with a surcharge of 125 percent. During the weekend, government representatives of the two countries then reached a breakthrough during the negotiations in Geneva. They agreed to reduce their mutual rates for the time being from today to 30 percent on most Chinese imports and up to ten percent on American goods.
Export restrictions for canceled semiconductors
The US government subsequently withdrew its planned export restrictions for semiconductors used for the development of artificial intelligence (AI). This should have prevented China from reaching the high -quality chips through other countries.
Despite the prospect of a trade agreement, the Chinese government continues to relieve resolutions with other countries. An agreement with Colombia was signed on Wednesday that the Chinese investment program “Neue Seidenstrasse” joined. This program is more than ten years of infrastructure projects with this program funded with this program, such as ports, train lines and airports in Asia, Africa, Latin -America and Europe.
China replaced the United States as the largest trading partner in Brazil, Peru and China. With the “New Silk Road”, access to the markets of other countries should be better and the political influence.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
