China and U.S. Reached Consensus for a Temporary Truce of the Trade War

Xi Jinping, President of China met with U.S. President Donald Trump after the G20 summit in Buenos Aires, Argentina on Dec. 1, during which the two leaders reached a consensus on trade and economic issues.

Both sides agreed that they would terminate trade restriction measures, including not elevating the existing tariffs towards the other country, and not levying new tariffs on other products.

SEE ALSO: Trump Fires the First Shot in the U.S.-China Trade War

According to BBC news, Trump agreed not to elevate tariffs on $200 billion of Chinese goods from 10 percent to 25 percent. The U.S. has originally planned to elevate the tariffs starting from Jan. 1.

With a spirit of mutual respect, the two sides will immediately begin to resolve the major concerns, as reported by Xinhua News Agency, the largest official news agency in China.

This year also marks the 40th anniversary of China’s reform and opening up. “With the guidance of the 19th CPC National Congress, China will continue to deepen reform and opening up,” Xinhua reports.

According to the official website of the White House, both leaders made remarks before the bilateral meeting.

“The relationship is very special, the relationship that I have with President Xi. And I think that is going to be a very primary reason why we’ll probably end up — ending up getting something that will be good for China and good for the United States,” Trump said.

However, this is not necessarily a sign of eternal truce of the Sino-American trade war. As negotiated, the grace period is 90 days, when the two sides will have further discussions. Meanwhile, China has also promised to purchase a large amount of agricultural and industrial products from the U.S..

The 2018 G20 Buenos Aires summit is the 13th summit of global leaders in the world. From Nov. 30 to Dec. 1, 19 leaders from leading world economies gathered in the Argentinian capital, having completed deep-seated discussions about infrastructure, future employment and food security.

Featured photo credit to 东方IC