China, US agree to remove trade tariffs in phases

A timeline for removal of the tariffs, however, was not revealed

liu_he File: United States Trade Representative Robert Lighthizer greets Chinese Vice Premier Liu He Thursday, April 4, 2019, at the Hay-Adams in Washington, D.C. | Wikimedia Commons

In fresh hopes of a 'phase one' trade agreement, China has agreed with the US to remove out tariffs between the two nations in phases. Gao Feng, a ministry spokesperson for China’s Commerce Ministry, said that both sides had agreed to simultaneously cancel some existing tariffs on one another’s goods.

A timeline for removal of the tariffs, however, was not revealed. According to a UN study, the trade war cost China $35 billion and hurt both economies.

Chinese President Xi Jinping and US President Donald Trump are likely to meet for a trade summit in December. A possible venue for the meeting could be London, where Trump could meet Xi after NATO summit he will be attending from December 3-4.

The nations have been locked in a trade feud for 15 months. According to a source, Chinese negotiators wanted the US to drop 15 per cent tariffs on about $125bn worth of Chinese goods that went into effect on September 1.

Trump administration wanted Beijing to curb the forced transfer of American technology to Chinese firms and wanted them to curb massive subsidies to state-owned companies. Analysts, however, feel that the two economies need a more comprehensive agreement before the market sentiment can be boosted.