During the talks, China and the United States sacrificed the basics to complete a trade war, as reported in previous publications. The outcome of the negotiation process, in the context of wins and losses, losing in a trade war the US and China likely to get Russia, which had high hopes to become the largest supplier of hydrocarbons to China.
To resolve the trade dispute and avoid the imposition of additional duties, which may relate to the entire Chinese exports to the United States, Beijing has promised to “substantially increase” the purchase of American goods.
We are talking about groups of industrial and agricultural products, and energy, as reported by the office of the U.S. trade representative Robert Lighthizer at the end of the three-day talks in Beijing.
The talks, which lasted three days instead of the planned two, were “massive, deep, detailed” and laid the foundations for resolving the conflict, as claimed by the Department.
The results of the meeting will be presented to officials in Washington, then the US will decide on further steps.
Sources familiar with the details of what happened at the meeting, according to Bloomberg, informed that in terms of purchases by China of agricultural products and hydrocarbons, managed to achieve significant progress, but differences remain solely at structural issues.
The China’s Ministry of Commerce said Thursday that both sides “embodied understandings” that were reached by the presidents of the two countries in preliminary talks.
Their last round was held in early December at the G20 summit in Argentina, where delegations headed by the President of Donald trump and President XI Jinping.
According to the results of previous meetings, the agreement to supply China with LNG to the us was reached at the talks, XI Jinping and Donald trump back in April of 2018. A month later, the U.S. Department of Commerce announced the signing of a bilateral trade agreement that significantly expands American energy companies access to the Chinese market.
At the same Cheniere Energy is a leading company American LNG exports, which was brought to China in the past year, five tankers, declared that in the process of preparing a long-term contract with China.
The crucial issue here, because at stake is the planned increase in tariffs on Chinese imports with a volume of $ 200 billion. The US President Donald trump has threatened to increase tariffs from 10% to 25% in the case until March 2, the parties fail to conclude an agreement, as well as input tariffs on all Chinese imports if Beijing will not yield to demands from the United States.
In the context of the results of trading decisions between the US and China it should be noted that Washington and Beijing have avoided the worst scenario that could trigger a further collapse of stock markets, as well as problems in the global economy. Recall that the world trade organization issued a forecast for the development of full-blown trade war between the United States and China, which would lead to a decrease in the volume of global trade by 17.5 percent.
The consequences would be noticeable to most countries. Since, in the event of deterioration in the economies of major trading partners, in terms of the sharp decline in commodity prices, as happens in a crisis, come quite difficult times for the economies of the peripheral countries, which include Ukraine, because the development of such countries mediated by the development of the world economic centers — the US, China, EU.
It should be understood that the global trade war (in contrast to the politically motivated trade aggression, which manifests Russia) is not only and not so much the rivalry as the search for a new world balance in the triangle USA — EU — China.
The priority for today for Ukraine the opportunity to become a part of this new balance. Of course, the US and the EU will remain the main economic and political partners of Ukraine. But Ukraine is in active search of new markets for the supply of Ukrainian products, first and foremost, today is the China market. Therefore, for Ukraine, the challenges exist. Since the question will China continue to buy Ukrainian agricultural products in the current volume in the case of the global economic crisis or collapse of prices of agricultural products, remains relevant, given the strong pressure in this aspect from the United States, and the consent of China’s dramatic expansion of the volume of purchases of American agricultural products.
Recall that despite the numerous calls of the leadership of the Russian Federation in search of cooperation, Chinese companies refuse to invest in the real sector of the economy, and following the Western companies withdraw their capital.