China Denies Trump’s Claim of Trade Truce Violation
China has denied President Trump’s claim that they violated the trade truce agreement between the two countries. The Chinese Ministry of Commerce released a statement on Monday stating that it was actually the United States that had introduced a series of “discriminatory restrictive measures” that were in violation of the agreement reached between President Trump and Chinese President Xi Jinping at the G20 summit in June.
The statement from the Chinese Ministry of Commerce comes after President Trump accused China of not following through on their promise to purchase more agricultural products from the United States. Trump tweeted on Friday that China had not lived up to their end of the bargain and that he was not happy about it. However, China has refuted these claims, stating that they have been making efforts to increase their purchases of U.S. agricultural products.
In addition to the accusation of not purchasing enough agricultural products, President Trump has also accused China of manipulating their currency to gain an unfair advantage in trade. The Chinese Ministry of Commerce responded to these accusations by stating that China has always maintained a market-oriented exchange rate regime and has never used the exchange rate as a tool to gain a competitive edge in trade.
Furthermore, China has accused the United States of imposing a series of “discriminatory restrictive measures” that have hindered the progress of trade negotiations between the two countries. These measures include the blacklisting of Chinese technology companies such as Huawei, as well as the imposition of tariffs on Chinese goods. China has stated that these actions by the United States are in violation of the agreement reached at the G20 summit and have made it difficult for the two countries to reach a trade deal.
Despite the escalating tensions between the two countries, both China and the United States have expressed a desire to continue negotiations in order to reach a trade agreement. Chinese Vice Premier Liu He spoke with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin over the phone on Tuesday to discuss the progress of the trade talks. Both sides have agreed to continue working towards a resolution to the trade dispute.
In response to the latest developments, global markets have reacted with uncertainty. The ongoing trade war between the world’s two largest economies has had a significant impact on the global economy, with many fearing the potential for a further escalation of tensions. The International Monetary Fund has warned that the trade war could shave 0.8% off global GDP growth by 2020 if it continues to escalate.
As the trade dispute between China and the United States continues to unfold, the future of the global economy hangs in the balance. Will the two countries be able to reach a resolution and put an end to the trade war? Or will the tensions continue to escalate, leading to further economic uncertainty and instability? Only time will tell.