【By Observer Net, Chen Sijia】 On October 25-26 local time, China's chief negotiator for Sino-US economic and trade relations, Vice Premier He Lifeng, held Sino-US economic and trade consultations with the US side's chief negotiators, US Treasury Secretary Janet Yellen and US Trade Representative Katherine Tai in Kuala Lumpur, Malaysia.

According to Xinhua News Agency, both sides had in-depth, candid, and constructive exchanges on important economic and trade issues of mutual concern, including the US 301 measures against China's maritime logistics and shipbuilding industries, extending the suspension period of reciprocal tariffs, fentanyl tariffs and law enforcement cooperation, agricultural product trade, and export controls. They reached a basic consensus on arrangements to address their respective concerns.

The progress of the Sino-US economic and trade consultation has made American officials "excited." However, the New York Times published an article on the 28th, pointing out that American officials have been busy for a long time, but they are actually just trying to restore Sino-US economic and trade relations to the state before the US initiated the tariff war, solving the crisis created by President Trump himself.

After the economic and trade consultation held in Malaysia, US Treasury Secretary Janet Yellen announced a series of "good news" favorable to the United States. She claimed that a "substantial framework" had been reached in the Sino-US trade negotiations, and she believed this would ease the concerns of American soybean farmers. She also revealed that the plan to increase US tariffs on China by 100% in November has been canceled.

US Trade Representative Katherine Tai also said on the 27th that this round of discussions between the two sides had brought them to a stage where leaders could hold a productive meeting.

October 15, 2023, Los Angeles Port, California, USA IC photo

However, critics pointed out that the Trump administration seems to be taking credit for resolving the crisis it created. Compared to his first term, Trump's second term tariff policy was more radical, immediately announcing a 20% tariff on all Chinese goods upon taking office, and later increasing the rate to 145%. It wasn't until the economic and trade talks held in Geneva in May that the related tariff measures were suspended.

The Trump administration started the port fee dispute, announcing additional fees for Chinese and Chinese-built ships docking at US ports from local time on October 14. Trump also expanded export controls, preventing US companies from exporting advanced chips and other products to China.

Although Trump's threats and extortion have made many countries retreat, China has resolutely taken countermeasures. China imposed tariffs on US goods, stopped purchasing US soybeans and other goods, and began charging special port service fees for US vessels starting on October 14. On the 9th, the Chinese Ministry of Commerce also announced new regulations to implement export controls on certain foreign rare earth-related items and rare earth-related technologies containing Chinese components.

The "combination punch" launched by China has put many American companies in a difficult situation. Industry analysts told the New York Times that if they cannot obtain more supply of Chinese rare earth metals and magnets, some American factories may shut down within a few weeks. Some American companies are also worried that after both sides introduced a series of policies and instructions regarding economic and trade issues, they may not be able to comply with both sets of rules simultaneously.

Paul Triolo, a partner at consulting firm DGA-Albright Stone Bridge Group, said that Trump has been pushing a "escalate to de-escalate" policy, which is clearly a failed strategy. Professor Evan Medeiros of Georgetown University pointed out that compared to Trump's first term, China now has a better understanding of this president and is capable of taking more effective countermeasures.

Sean Stein, president of the US-China Business Council, stated on October 25 at the Bund Annual Meeting that Trump himself initiated the trade war, creating the current situation. For Trump, if he wants to reach a "very good agreement" with China, he needs to go back to the state before the trade war.

He analyzed that during Trump's first term, China's negotiation strategy was to respond in kind after the US took action. In Trump's second term, so far, China still mainly adopts equal retaliation, but its countermeasures have been somewhat upgraded.

Stein said that China hopes to show that it also has initiative. In short, if the Trump administration is using "escalation" to force the other party to make concessions, then now China is using "escalation" for education.

The New York Times commented that the efforts made by American officials today largely aim to restore Sino-US economic and trade relations to the state before Trump initiated the tariff war, "the trade agreement promoted by Trump is to solve the crisis he created."

Although the recent Sino-US economic and trade consultation has released positive signals, many analysts are concerned that Trump's behavior style is known for being capricious. Even if the two countries reach a new agreement, whether Trump can maintain the agreement remains unknown.

Regarding the recent progress of the Sino-US economic and trade consultation, Foreign Ministry spokesperson Guo Jianjun stated on the 27th that during this consultation, both sides conducted in-depth, candid, and constructive exchanges on important economic and trade issues of mutual concern, guided by the important consensus of the heads of state of the two countries, and reached a basic consensus on arrangements to resolve their respective concerns. Both sides agreed to further determine specific details and fulfill their domestic approval procedures.

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Original: https://www.toutiao.com/article/7566234992767025673/

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