Global Geopolitical Series: U.S. and China take up steps to diffuse trade tensions

Vice Premier of the Republic of China has arrived in Washington on May 15th. He his Chinese President Xi Jinping’s special trade envoy to the United States. He would be staying in the United States for five-day talks to defuse trade tensions between the two economic giants.  

Since last week, both United States and China have taken up steps to diffuse frictions over trade and products. On May 13th, President Trump tweeted, “President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!”

He followed up next day saying, “ZTE, the large Chinese phone company, buys a big percentage of individual parts from U.S. companies. This is also reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi.”

And last night, China seems to have returned the favor by announcing that it is dropping sanctions probe on U.S. Sorghum imports. Previously, China slapped 178.6 percent import tariffs on U.S. Sorghum, which went into effect on 18th of last month.

These steps are positive developments for the financial market and businesses, which have been overly worried about the trade fights between the two economic giants.