Published: Thu, September 12, 2019
Markets | By Otis Pena

China may resume purchasing USA farm goods

China may resume purchasing USA farm goods

-China trade war in August when he announced an increase in the levy, already in effect, on US$250 billion in Chinese goods to 30 per cent from 25 per cent starting October 1.

The announcement came after China said earlier in the day that it would spare some U.S. products from punitive new tariffs, an apparent conciliatory move ahead of high-level talks next month aiming to resolve the two nations' protracted trade war.

Trade negotiators have said they will meet in Washington in early October, raising hopes for an easing of tensions between the world's two biggest economies. Farming and energy sectors have been hit especially hard, and some economic forecasters have predicted that a recession is imminent.

President Trump said China "did the right thing" by removing some tariffs.

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The increase in tariffs from 25% to 30% was supposed to take effect on that date.

China Vice Premier Lui He and President Donald Trump

They said Beijing had been sounding a more "constructive" note in recent weeks over trade relations.

Trump kicked off the trade war in June last year, demanding China to reduce massive trade deficit which last year climbed to over United States dollars 539 billion.

The American Chamber of Commerce in Shanghai's annual China Business Report also found that 75 percent of USA firms opposed the U.S. use of punitive tariffs to force China into a trade deal and market-access reforms.

Both sides imposed fresh tit-for-tat tariffs on Sept 1.

The American Chamber of Commerce in Shanghai said just 47 percent said they expected to increase their investments in China in 2019 - down from 62 per cent previous year - while three-quarters of businesses surveyed said they opposed the use of punitive tariffs by the United States to force China into a trade deal.

Preliminary meetings are set to take place later this month in Washington before United States treasury secretary Steven Mnuchin and trade representative Robert Lighthizer meet China's vice premier Liu He in October.

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But it is not clear whether the White House could seek to stonewall the hearing by directing Porter and Dearborn not to testify. The debate about what exactly the committee is doing also highlights the growing divide among House Democrats.

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