Tech issues not so easy.
The WSJ is reporting some details of the US/China trade talks from Buenos Aires. Included are:
- Negotiated period of 90 days during which the US would not raise tariffs on the $200 billion of goods to 25%
- China would purchase a large amount of goods and services including soybeans and natural gas purchases in the "coming weeks".
- China would consider reducing tariffs on US autos
- Although the tariff reductions are not required, both side believer early purchases would serve as a kind of down payment.
The hard part and heart of negotiations would deal with:
- Broader access to US firms to Chinese markets
- Prohibition of IP theft
- End to alleged Chinese on US firms to share technology when doing business in China
The US looks at the tariffs as a way to "enforce" any deal. As such, they will not be removed unless Beijing agrees and puts into effect proposals (and could be raised if there is no progress).
According to the article, there are two ways to test if the agreement is at least defusing trade tensions:
- China's purchase of US agriculture and energy products soon. This would be a good faith gesture that China is willing to make an effort,
- How quickly China escalates higher level discussions with US Trade Representative Lighthizer.
Muddying the waters - and perhaps disrupting the negotitaion proces - is the arrest of the Huawei's, Meng Wangzhou last week in Canada.
The US wants to extradite Ms. Meng to the US. Beijing said on Saturday, that Canada should release Meng or "face unspecified consequences". According to the WSJ, Beijing was planning to send a 30-member trade team to Washington in the week of December 10th. Will that schedule remain?
The full story from the WSJ can be found here.
