China is currently considering canceling this week’s trade talks with United States after US President Donald Trump threatened to impose higher tariff rate on $200 billion worth of Chinese goods.
Trumps decision came after his remark on twitter commenting over the pace of trade talks. Trump, on Sunday, announced that he would increase the tariffs on Chinese imports from 10% to 25% this week.
Chinese officials were surprised by Trump’s threat. A senior economist at Maybank King Eng Research in Singapore said that Trump’s action might lead into a full blown trade war since “China will not want to negotiate with a gun pointing at their heads.”
Chinese Vice-Premier Liu He is expected to arrive in Washington this week with a large number of trade negotiators who insisted on anonymity because they were not authorized to comment anything regarding the negotiation.
The latest round of talks aims to end trade war between the countries. But in December, Trump and Chinese President Xi Jinping agreed to refrain from a tariff truce. China and US have been locked in a negotiation for an agreement that deals with US concerns over China’s alleged theft of intellectual proper, trade suplus, and with Beijing forcing US companies to transfer their technology.
