According to Bloomberg News, Chinese executives are growing doubtful to chase a broad trade accord with the U.S. in negotiations planned to start this week. Sources familiar with the situation said that Vice Premier Liu He will lead conciliations for China. Liu told dignitaries that his proposal to the U.S. would not comprise commitments on reshaping Chinese government subsidies or industrial policy. These are few of the Trump administration’s major demands in the trade talks. The trade talks are near as Trump faces an accusation inquiry in the House of Representatives, following the president recommended in a phone call with Ukraine’s president that the nation investigates Joe Biden—who is a potential 2020 competitor—along with his son Hunter. However, people close to the government stated that the prosecution inquiry has not affected trade talks with China.
As trade representatives prepare for this week, strains have grown subsequent to reports disclosed that Trump executives were weighing some curtails on the U.S. investments in China, counting probably blocking all U.S. financial speculations in Chinese firms. Nonetheless, Peter Navarro—the White House Trade Policy Director—denied those reports and stated them as “fake news.”
On a similar note, it was stated that the trade war impact is “more noteworthy than most Americans ever realized.” The trade war amid U.S.-China has dealt serious blows to the American financial system, and President Donald Trump has pointed out that the U.S. would not back down. Yet since the tensions amid the two nations carry on and the retaliatory tariffs persist, the economic outcomes are clear in major sectors across the U.S., from agriculture, manufacturing, industrial to even lumber. Doug Barry—Senior Director of Communications and Publications at the USBC (U.S.-China Business Council)—said to Yahoo Finance, “Remember, we were stated that the trade conflicts are easy to prevail. That was just as they were started a year ago. We discovered that they are not easy to win.”