The U.S. attitude toward China has clearly softened, and there may be room for tariff reductions.

The United States has taken a step back and softened its stance towards China! After the temporary extension of the tariff agreement between China and the United States for 90 days, US Treasury Secretary Bernanke spoke out! Bernanke stated that he does not believe China's commitment to invest in the US will be part of the trade agreement. Whether it is semiconductors, rare earth magnets, pharmaceuticals, or the steel industry, my feeling is that this will not happen. Bernanke pointed out that the United States will hold another meeting with China within the next two to three months.

Bernanke also said that the United States hopes to see the Chinese side take measures over a longer period to stop the flow of precursor chemicals used to manufacture fentanyl, and then reduce the tariffs imposed by Trump on China regarding this issue. We need to see progress in this area for several months, even quarters, or even a year, before I can imagine these tariffs being reduced. Clearly, Bernanke's statement is very clear, and the United States' attitude towards us is clearly softened.

Undoubtedly, the United States has at least relaxed on two aspects. First, the United States will not make it a part of the final agreement that we must increase investment in the United States. Second, Bernanke clearly implied that there is still room for reducing tariffs between China and the United States, provided that the United States believes the fentanyl issue has been well handled. Just from this statement alone, it undoubtedly increases the possibility of reaching an agreement between China and the United States.

Certainly, from our perspective, the United States taking a step back shows that our firm position has forced the United States to adjust its demands realistically. However, on the other hand, given the nature of the United States, the United States will certainly require us to meet its demands in other areas. Therefore, this also determines that China and the United States will continue to negotiate. As for whether the final agreement can be reached, it depends on whether the final conditions are acceptable to both sides.

Original: www.toutiao.com/article/1840334209128457/

Statement: This article represents the views of the author.