* Date : 2018-12-10
U.S.-China trade 'truce'
The trade talks between the U.S. and China which took place on the sidelines of the G20 summit in Argentina concluded with a 90-day 'truce' to halt imposing additional tariffs. As a result, the plan to impose a 25 percent tariff on Chinese products worth US$200 bil. will be put on hold and the two countries will immediately begin negotiations to systematically change the issue of forced technology transfer, intellectual property rights and cyber theft over the next 90 days. If negotiations fail within 90 days, tariffs will be raised to the initial 25%. What is the reason both President Trump and President Xi Jinping agreed to this 90-day hiatus and what consequence will it have after the 90 day grace period?