As a high-profile delegation from the U.S. prepares to visit Beijing for trade negotiations this week, Borge Brende, the World Economic Forum (WEF)’s president hopes for a breakthrough. He thinks the two countries are pretty close to having breakthrough, Brende said on Sunday.
This Tuesday, Treasury Secretary Steven Mnuchin and Trade Representative Robert Lightizer from the U.S. will travel to China meet Liu He, Chinese Vice Premier. An earlier statement issued by the White House indicates trade issues such as forced transfer of technology, intellectual property, non-tariff barriers, services, purchases, agriculture and enforcement will be discussed during the trade talks.
This week’s discussions will be followed by additional trade negotiations in Washington on May 8, when the vice premier would lead a Chinese delegation there.
Brende added that whilst finding solutions to the persisting trade issues will be in the interest of the world’s largest economy, U.S. and the second-largest economy China, both nations must show a certain level of flexibility during these negotiations.
American advisors for trade have had multiple talks in Washington as well as in Beijing since several months with hardly any success that was worth announcing publicly. Both the countries are trying hard to resolve this ongoing conflict, which is not just affecting equity markets but is even impeding investor confidence. It has been more than one year since U.S. and China have been trying to settle their differences.
Brende says if they are able to break the impasse created, there are high prospects of a much-needed spurt in the growth of the global economy. This could create new jobs and strengthen this period of economic growth, the second longest since World War II.
Expectations for a breakthrough reached an ecstatic mode, as President Donald Trump gave a hint that President Xi JInping, would be visiting the White House soon.