China is preparing a deal for Trump in hopes of avoiding tariffs

Beijing is preparing its first proposal to try to prevent further tariff increases and technological restrictions from the Trump administration.

The Wall Street Journal writes about it.

The proposal, which is being discussed in Beijing in preparation for the talks, will focus on the renewal of the trade agreement known as “Phase I”, which China signed with the United States in early 2020 but did not implement.

It is noted that Beijing perceived the 10% tariffs as a way of putting pressure on Trump, but also noted that its first step on tariffs was not such “maximum pressure” because Trump had threatened to raise tariffs to 60%.

Other elements of China’s plan to counter President Donald Trump’s tariff hike will include a proposal to increase investment in the United States and a commitment to reduce fentanyl shipments.

Beijing also seeks to treat the situation around TikTok as a commercial matter, which means that it may allow investors of the Chinese parent company ByteDance to strike a deal with interested American bidders.

To recap:

US President Donald Trump signed three decrees imposing additional duties on goods from Canada, Mexico and China. This was the first official decision in the trade war. The leaders of Canada and Mexico promised to retaliate with similar measures.

China plans to challenge Trump’s new duties at the World Trade Organization (WTO) and respond with unspecified countermeasures.

Tags: China, USA