New Progress Has Been Made In The Easing Of Sino-US Trade Relations

- Dec 13, 2018-

On December 1, the Chinese dollar first met during the G20 summit. After two and a half hours of effective communication, the Trump administration decided to suspend the decision to impose a 25% tariff from January next year. All the tariffs were negotiated, but some commented that the future situation is not completely clear.

According to the data of China Rubber, the total value of automobile tires (passenger tires and passenger tires) exported by Chinese manufacturers to the US in 2017 alone reached US$1.618 billion (about RMB 11.245 billion), if 25% of the increase With the introduction of tariff measures, the relevant tire companies will increase the export cost of about 2.8 billion yuan.

According to the news at the scene, as a concession, China needs to expand the purchase of products in the fields of agriculture, energy and industry in the United States. At the same time, the White House issued a statement saying that whether the US imposes additional tariffs depends on the negotiations between the two parties within 90 days. In other words, the US only promised to suspend taxation for three months. The future trade war process still needs to see the results of the negotiations between the two sides.

For China's rubber industry, especially the tire industry, the impact of trade war is huge. Tire products are different from additives, carbon black and other products. Their own profit margin and added value are not high, and tariffs are imposed. This part of the cost is also difficult to pass to downstream dealers.

The parties have given different views on the truce of this trade war. Some netizens commented that the Trump administration has set a precedent for “extraordinary rebellion”. This conditional regression may not be the signal of the end of the trade war.

The Washington Post commented that Trump had taken the first step from his confrontation with China for several months, agreeing to cancel the tariff increase plan in exchange for the Chinese purchase of US products, and the US-China trade war temporarily ceased. Leave the most difficult issues to future negotiations."

The British "Financial Times" said that Chinese and American officials have already discussed, if the Chinese dollar first reached a trade war truce agreement in Buenos Aires, the two sides will hold a new round of trade negotiations in Washington in December. They said that Beijing’s trade negotiators will lead a delegation to Washington to carry out negotiations, tentatively scheduled for the 12th to the 15th.