China pushes for Rollback of Section 301 Tariffs
The United States and China had high level negotiations October 10-11, 2019 and reached a “Phase 1” agreement. President Trump met with Vice Premier Liu He at the White House, and mentioned, ‘We had a very, very good negotiation,” according to the Wall Street Journal. Moreover, the New York Times mentions that President Trump states it is a fantastic deal that American businesses will benefit from, however the details and scope of the agreement were still unclear.
The two countries plan to continue to work on a mutually beneficial and official trade deal. President Trump and President Xi Jinping both plan to attend the Asia-Pacific Economic Cooperation summit in Chile in mid-November. Some rumors are indicating they may sign the deal on November 17, 2019, but it is also rumored that a deal will be signed in the United States.
In the meantime, The South China Morning Post indicates that China is pressing the United States to remove more tariffs ahead of the “Phase 1” agreement. The publication states, “Beijing wants duties lifted in exchange for agreeing to buy up to $50 billion dollars worth of U.S. farm goods within two years.”
As rumored in the “Phase 1” agreement, the United States originally planned to impose the Section 301 additional tariff of 15% on Chinese imports List 4b scheduled for December 15, 2019, unless talks continue in the right path. China is demanding that these tariffs be lifted along with the List 4a tariffs that went into effect on September 1, 2019.
If this occurs, China will agree to purchase “up to $50 billion dollars worth of U.S. farm goods within two years and implement commitments to open its financial services sector and increase intellectual property protections,” according to the South China Morning Post.