INSUBCONTINENT EXCLUSIVE:
China and the United States on Monday pledged to remove or suspend the bulk of tariffs they had recently imposed on each other, marking a
significant step toward defusing trade tensions and paving the way for broader discussions between the world's two largest economies.The
joint announcement came after a two-day high-level economic and trade meeting in Geneva, where both sides acknowledged over the weekend the
vital importance of their bilateral commerce for the health of their economies and the global market.The reason the talks could achieve
progress in such a short time is because both countries are feeling the immediate and tangible effects of the high tariffs, Luo Zhenxing, an
associate research fellow at the Chinese Academy of Social Sciences' Institute of American Studies, told China Media Group (CMG)."The U.S
imposed extremely high tariffs on Chinese goods, prompting China to respond firmly to protect its own interests, and as a result, both sides
quickly escalated tariffs to prohibitive levels," he noted.Trade frictions that began last month, when U.S
President Donald Trump raised tariffs on Chinese goods to as high as 125 percent, have brought trade between the two countries to an almost
On Friday morning, officials told CNN that in the previous 12 hours, not a single cargo vessel had departed from China bound for major West
Coast ports.Another reason, Luo said, is that having already endured a prior round of trade disputes, both countries now have more
experience and a clearer understanding of each other's core concerns.In Monday's joint statement, the U.S
has committed to rolling back 91 percent of the additional duties it imposed on Chinese products under two executive orders issued in April
It further pledged to modify 34 percent of the reciprocal tariffs enacted on April 2 by suspending 24 percent for an initial 90-day period,
while leaving the remaining 10 percent in place.China, in response, will lift 91 percent of its counter-tariffs on American goods
For the 34 percent of counter-tariffs corresponding to the U.S
measures, it will suspend 24 percent for 90 days and maintain the other 10 percent
The country also intends to suspend or remove corresponding non-tariff restrictions against U.S
products.The primary goal of the high-level meeting in Geneva is to restore bilateral trade first, and then to explore broader issues on
that foundation, Gong Jiong, a professor of economics at the University of International Business and Economics, told CMG.In their joint
statement, both sides committed to implementing these tariff adjustments by May 14 and underscored the need to cultivate a durable,
long-term, and mutually beneficial economic partnership
They also agreed to establish a mechanism for continued dialogue on their trade and economic relations.This mechanism, according to Yuyuan
Tantian, a social media account affiliated with China Media Group, will be co-chaired by the heads of the two countries' respective teams,
who will engage in both regular and ad hoc communications on bilateral trade issues
Future dates and venues for these meetings will be decided jointly by both sides."At the same time, broadening the cooperation agenda and
enlarging the 'cooperation pie' is also one of the tasks of the mechanism, thereby fostering new advances in Sino-U.S
economic and trade relations," Gong said."There is considerable room for collaboration between China and the U.S
in manufacturing, emerging technologies, and other fields – though, of course, the extent of that cooperation will depend on how the U.S
views these opportunities," he added.(Cover: /VCG)
