CHINA-US TRADE WAR: WHAT THE PARTIES AGREED ON DURING THE G20 SUMMIT?

Photo: znaj.ua

On the first day of the G20 summit, US President Donald Trump happily stated that the United States and China have agreed to pause their trade war, which has been going on for six months. During the talks over lunch, Trump and Chinese President Xi Jinping agreed not to aggravate their trade disputes, mutually increase duties and limit the activities of each other’s companies on their territory. Instead, the parties suddenly decided to freeze their conflict and begin negotiations on a future model of continued cooperation on trade and technology exchange.

The Chine-American agreements had a positive impact on world markets and gave hope to many investors who were waiting for a breakthrough in their negotiations and expected at least some predictability of their actions. But is this step really aimed at improving the international trading system? Isn’t that a trap the US has set for the Chinese? Or is it the other way around: Beijing’s proactive approach?