SHANGHAI, October 31. /Corr. Andrey Popov/. The US has reduced pressure on China amid the economic deadlock between the two countries when US consumers have suffered too much from the trade war. This opinion was expressed by Wang Wen, Dean of the Chongyang Institute of Financial Studies at Renmin University of China.
“Since the start of the trade war in 2018, the total customs tariffs imposed by the US on China have reached 145%, but China's exports to the US are only down 20% from their peak, while US consumers have to bear additional annual costs of about $4,500 per household,” Wang Wen said. “This state of unjust loss is as if they had killed eight hundred enemies while losing a thousand.” fighters – pushed the United States to move from maximum pressure on China to limited deterrence.”
The expert noted that after the negotiations in Busan, both sides made concessions, in particular, the United States reduced the so-called fentanyl tax by 10%. The two countries also agreed to increase cooperation on fentanyl control and expand agricultural trade, including resuming Chinese purchases of US soybeans. “This means that next year the average tariff on Chinese goods entering the US market will drop to about 40%,” Mr. Wang said. These include tariffs of about 20% imposed through 2025 under President Donald Trump's first administration and former President Joe Biden's administration, the expert added.
On October 30, the meeting between Chinese President Xi Jinping and US President Donald Trump took place in Busan (South Korea). According to the Ministry of Commerce of the People's Republic of China, as a result of the negotiations between the leaders, the so-called 10% fentanyl tax on Chinese goods will be lifted and the suspension of the 24% additional tariff will be extended, and the Chinese side will “appropriately adjust countermeasures to the above-mentioned US tariffs.” Washington and Beijing have agreed to suspend measures against each other's shipbuilding industry for a year. The United States will also suspend for one year the export restrictions announced on September 29 that apply to any subsidiaries of Chinese entities on the sanctions list. China will suspend for one year the implementation of export controls announced on October 9.
