Trade negotiations between the U.S. and China are unlikely to be affected by the recent imposition of tariffs by both countries. The trade negotiations between the two largest economies of the world are expected to continue. Neither the U.S. nor China would want the world to see them as the one who caused the talks to dissolve. Such a step would have ramifications for the political image of the countries.
Willian Reinsch from the Center for Strategic and International studies commented that it would be a significant failure for U.S. President Donald Trump’s foreign policy if he canceled the talks. Trump has made positive comments on the progress of US–China talks during the previous year. Any setback caused to the trade talks from the American side would expose Trump to extensive criticism.
The situation is similar for the Asian country. If the Chinese pull out, they would be subjected to the same criticism and this would provide the U.S. President a pretext to blame them.
The disagreement started over intellectual property rights, with Trump claiming that the Chinese steal billions of dollars’ worth of intellectual property from American businesses causing extensive losses to America’s economy. The bilateral trade imbalance has also been an area of concern. China, being a manufacturing giant, exports much more goods to the U.S. compared to what it imports. This affects the balance of payment between the two countries.
The U.S. demands that the bilateral trade be balanced out, and issues on intellectual property rights should be resolved peacefully. The trade talks suffered a setback in May when Trump announced tariffs on $200 billion of Chinese goods entering the US. The situation is similar this time with both countries playing tit-for-tat, but experts believe that this time the scenario is different and the trade talks may continue without many problems.