Future of trade: Historical meeting between China and the USA in London

The positive market reaction to the calls of the state's phone calls is shown in an increase in freight rates and gain at the US stock markets. Wu Zewei from Sushang Bank expressed that the talks in London could improve the prospects for bilateral cooperation.

background of the trade conflicts

The trade conflict between the USA and China, which has been going on since March 2018, was originally triggered by mutual punitive tariffs. The US goals included the modification of the Chinese state capitalist economic and industrial policy as well as the reduction in trade balance deficit, which was $ 375 billion in 2017. China reacted to the US tariffs, which affected imports worth around $ 370 billion, with its own tariffs and WTO procedures, which led to a tightening of the tensions.

The "Phase One Trade Agreement", which was signed on January 15, 2020, provided for China to buy US products worth $ 200 billion within two years and at the same time ensure better protective measures for intellectual property and the absence of forced technology transfer. However, the US tariffs remained on imports worth $ 250 billion, while there have been no substantial discussions about a "phase Two Agreement".