Is the customs agreement between the United States and China in danger? Both parties accuse each other, the opposite side does not adhere to agreements. China is currently benefiting from the current customs break.
In the trade dispute between the USA and China, the Chinese government has now rejected allegations from Washington that the People’s Republic had violated the agreement to reduce mutual tariffs. The Ministry of Commerce in Beijing said that the US government had “raised false allegations and accused China in an inappropriately”.
China clearly rejects these accusations. Instead of self-critical to deal with your own behavior, the US side accused China of having violated the consensus.
Furthermore, after the Geneva talks, the US side “continued to issue new discriminatory restrictions to China”. Specifically, it called measures that further restricted the sale of AI chips and chip design software to China, as well as the announcement of a cancellation of Visa Chinese students in the USA.
Dispute of rare earths
In mid-May, the United States and China agreed to reduce the mutual tariffs significantly from 145 to 30 percent to most Chinese products and from 125 to ten percent to most US products.
The US President described China’s opening at the time as the most important goal and stated that China had agreed. Most recently, the US government had tightened the tone towards China. “The bad news is that China, which some may not surprise, broke his agreement with us completely,” said US President Donald Trump last Friday on his online platform Truth Social. In the post office, he did not explain what he is establishing the violation of the agreement.
The US trade representative Jamieson Greer specifically accused the Chinese side of “braking” for rare earths for export permits. China’s Ministry of Commerce, in turn, said the United States introduced “a number of discriminatory measures” – such as export controls for high -performance chips or the visa stop for Chinese students.
Do the presidents talk to each other?
Practice Minister Scott Bessent yesterday told the US broadcaster CBS that an early phone call between Trump and the Chinese President Xi Jinping was possible. He was convinced that such a conversation will solve the problem. The Ministry of Commerce in Beijing did not go into this today.
According to current Chinese economic data, China’s industry benefits from the current break in the trade conflict. The official shopping manager index for the processing industry improved somewhat in May, since the deliveries to the USA were resumed and preferred due to the 90-day customs break that expired in mid-August. However, the value remains just below the so -called expansion threshold of 50 points.
