Trade War, US-China Finally Find the Bright Spot, Has Reached the Deal

TRIBUNBATAM.id - China and the US agreed to remove the additional import duties imposed on the products of both countries. The removal of additional duties will be carried out in stages.

A spokesman for the Ministry of Commerce of China, Gao Feng said the agreement was reached after the two sides had seriously discussed the past two weeks.

"For the past 2 weeks, the two negotiating teams had a serious discussion. They agreed to remove the additional duties imposed on each product in different phases," said Gao Feng, quoted by CNBC, Friday (11/08/2019).

Gao Feng explained, to reach a phase 1 agreement, both parties must simultaneously cancel the additional tariff with the same proportion. 

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In line, White House spokesman Stephanie Grisham said the same thing. He said, his side was very optimistic that both parties would soon reach the agreement that had been promised.

"Trump is optimistic that the two sides will achieve immediate closeness," he said.

Phase 1 trade agreements between the two countries are a new hope for investors. Market participants also expect the two economic giants to sign an agreement late this November, after Washington and Beijing met last weekend.

Nevertheless, analysts were skeptical that the deal would be able to overcome Trump's pressure on Xi Jinping. Economists think the two countries still need a more comprehensive agreement. 

Moreover, the most recent, a meeting between President Donald Trump and Chinese President Xi Jinping can be postponed until December 2019. Delaying the meeting also means delaying trade agreements for the time being between the two countries.

For information, the two countries have implemented tariffs on imported goods between the two countries that are worth billions of dollars since the beginning of 2018.

This incident made the market sentiment worsen along with the collapse of business and consumer confidence.

But recently, both parties agreed to remove additional duties. (*) 

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