Details of the first day of commercial negotiations between Beijing and Washington

China and the United States have concluded the first round of trade duties on customs duties on Monday evening, amid global anticipation of results that might make a shift in trade relations between the two economic powers.
A US Treasury spokesman announced that the talks will be resumed today, Tuesday, after the end of the first session.

The background of commercial tensions

These negotiations come after former US President Donald Trump announced 15% of customs duties on imports from the European Union, which sparked an international race to avoid more strict US trade measures.

Beijing hopes that the atmosphere of “mutual respect” and “reciprocity” will prevail, according to a spokesman for the Chinese Foreign Ministry, Goo Jiakon, who stressed the importance of promoting dialogue and understanding to avoid further escalation.

Commercial partners awaiting

In light of the lack of an agreement, the exports of dozens of countries – including Brazil and India – may face customs increases of up to 50% as of Friday August 1, compared to the current basic level of 10%.

According to the “Padigit Lab” center of Yal University, the customs duties imposed during the Trump administration reached its highest level since the 1930s.

The American approach turned

Analyzes indicate a shift in Washington’s direction towards China, as Emily Benson of Menerva said that the focus has moved from the clash to achieving “applicable results” and strengthening relationships wherever possible.

It also pointed to Chinese elasticity in rare metal export restrictions, which are met by American relief on semiconductor exports.

Extension of the commercial truce is possible

Reports indicate the possibility of the extension of the ninety -day truce, which ends on August 12, a similar additional period, in light of the continued talks in several capitals such as London and Geneva.

The newspaper “South China Morning Post” said that the two parties are heading towards extending the agreement, although not officially announced this.

Sporadic agreements with other countries

Washington has announced initial agreements with countries such as the European Union, Britain, Japan and the Philippines, while South Korea is preparing to sign a similar agreement.

“Reducing customs escalation is an indication of the two parties’ desire to continue the dialogue.”

On the other hand, Sean Stein, the US-Chinese Capital and Speaker, noted that “the markets are awaiting the atmosphere of negotiations more than their details,” with optimism with a possible meeting between the two presidents later this year in Beijing.