The latest results of the Sino-US trade war
On August 23, the latest round of trade negotiations between China and the United States ended.
On the same day, America brandished a big stick and slapped a 25% tariff on $16 billion of Chinese goods. China immediately retaliated with the same $16 billion in U.S. goods, and the same 25% tariff.
Talk about it. Talk is to avoid a fight, but the fight does not seem to affect the conversation.
After the negotiations, the Chinese side released a press release:
At the invitation of the us side, Chinese vice minister of commerce and deputy representative of international trade negotiations wang shouwen led the Chinese delegation in Washington on August 22, 2008. The two sides will maintain contact on the next steps.
A full hundred Chinese characters are concise and to the point, but the news elements are complete.
Ahead of the press release, the us, in the name of White House deputy press secretary lindsay walters, issued a simple statement:
Officials from the United States and China have concluded two days of economic and trade consultations. The two sides exchanged views on how to achieve a fair, balanced and reciprocal relationship between the two countries, including resolving China's structural problems as outlined in the 301 report. The United States appreciates the participation of the Chinese delegation in these talks. The us delegation will report to the competent officials on the content of the consultations.
It was short, but sharp, and diplomatic.
The combination of these two paragraphs, in the eyes of the bulls, actually sends out at least three important messages.
First, both sides are open to negotiations.
Second, it may not be an easy negotiation.
Third, negotiations should continue.
Affected by this negotiation, China's steel prices will continue to rise.
Let us be prepared to meet the next changes.