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techkenyot.com March 21, 2019


China-US Ceasefire Paves Way For New LNG Projects

07 December 2018, 04:09 | Hattie Nash

China-US Ceasefire Paves Way For New LNG Projects

China-US Ceasefire Paves Way For New LNG Projects

But Asia failed to follow the lead to the same extent after China gave its first official comments on the temporary trade truce which allowed for tariff hikes to be postponed for 90 days- until 1 April.

The leaders attended the G-20 summit in Buenos Aires, Argentina.

"We are either going to have a REAL DEAL with China, or no deal at all - at which point we will be charging major Tariffs against Chinese product being shipped into the United States", Trump wrote on Twitter.

"I think this is more about delaying the inevitable as much as [the Chinese] possibly can", Keane, a Fox News senior strategic analyst, said.

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In addition, Treasury Secretary Steven Mnuchin said Tuesday on the Fox Business Network that China agreed to buy $1.2 trillion of US products.

It did not give further details but it crucially did not contradict the U.S. president's remarks that China would buy more goods from the United States to help close their trade gap and structural changes to intellectual property protection. "Take that step and see if they can make more progress, I think, is likely where [Trump] is coming from".

There are several significant take-aways from this development, including the argument that Trump's hard line, even at times belligerent stance with Beijing, has caused them to blink first, particularly since economic growth in China has already started to feel the brunt of US tariffs, while USA economic growth, though not as robust as a few months ago, is still strong.

Watch more from "The Story" above.

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Trump has agreed to delay a rise in tariffs on China while talks continue. Very good things will happen. Failure would raise the spectre of fresh United States tariff action and potential Chinese retaliation as early as March.

The 90-day timetable started Saturday and will stave off a round of tariffs on Beijing that were scheduled to go into effect on January 1, the White House said on Monday.

The commerce ministry said China-US trade and economic discussions were "very successful".

Washington and Beijing said they will try to achieve a permanent deal within the next 90 days, however the USA still has significant leverage, stating that if a formal deal can't be reached then it will hike tariffs from 10 percent to 25 percent, which could roil global stock markets, stagnate global economic growth, dampen oil demand growth and possibly lead to a recession across the globe, particularly in emerging economies.

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Earlier this year Trump imposed an import tax of 25 percent on $50 billion in Chinese products, then hit an additional $200 billion worth of goods with 10 percent tariffs.



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