On Sunday, May 5, 2019, the US President had threatened the Chinese government that he may further increase the tariff rates on its imported goods. Previously, many speculators were expecting that the issue between the two economies may get resolved during the trade talks which were pre-scheduled for May 10, 2019.
Few analysts still believe that the Chinese delegation will try to renegotiate on the terms and conditions of trade policy. During a press interview, Victor Gao said that due to the present trade war the economy of China has suffered tremendously. He further said that it is still unclear how much money the country has lost due to this trade war. Mr. Gao also said that the country has to employ various ways to overcome the loss which it has suffered.
At present, the GDP growth of China is around 6.5% which is more than 200% than the GDP of America. Mr. Gao said that due to the trade agreement both of the economies will flourish and their GDP will increase. He further said that the trade war has created chaos in both the economies and it would be better if the U.S and China reach a mutual agreement policy.
According to few analysts, it would be favorable for both the nations to reach a mutual trade agreement as then they both will flourish at a high rate. During an exclusive media interview, Mr. Gao said that both China and U.S need to have a mutual agreement with each other.
He also said that due to the present trade war both the countries have to deal with a state of chaos and utter turmoil which is further hindering their economic growth. The vice president of China will also participate in the trade talks which would take place on May 10, 2019.