China is back at the negotiating table and is requesting a “calm” resolution to the trade war.
The major concession came after its currency, the Chinese Yuan, fell to an 11-year low over the weekend, Yahoo News reports.
Last week, China announced they would be hiking tariffs on the United States, including more than $75 billion worth of goods. President Trump quickly responded to this news by announcing he would be doing the same, matching their gesture. The president’s quick retaliation—the latest move of a multi-year negotiating effort led by President Trump—was reportedly the last straw for the Chinese government.
“China called last night… said let’s get back to the table, so we’ll be getting back to the table,” Trump told reporters, per the report.
“China is willing to resolve its trade dispute with the United States through ‘calm’ negotiations and resolutely opposes the escalation of the conflict, Vice Premier Liu He, who has been leading the talks with Washington, said on Monday.” https://t.co/1FTmXVZ93Z
— Nick Short 🇺🇸 (@PoliticalShort) August 26, 2019
Reuters reports Vice Premier Liu He called for a “calm” resolution to the trade war:
China is willing to resolve its trade dispute with the United States through “calm” negotiations and resolutely opposes the escalation of the conflict, Vice Premier Liu He, who has been leading the talks with Washington, said on Monday.
Liu, speaking at a tech conference in southwest China’s Chongqing, said nobody benefited from a trade war.
“We are willing to resolve the issue through consultations and cooperation in a calm attitude and resolutely oppose the escalation of the trade war,” Liu, who is President Xi Jinping’s top economic adviser, said, according to a government transcript.
#Trump just did something we have not seen in a long, long time: an American president intimidating a Chinese ruler. This, ladies and gentlemen, is what winning looks like. #China #trade https://t.co/Vfo4I9BR0E
— Gordon G. Chang (@GordonGChang) August 26, 2019
Liu added, per the report: “We believe that the escalation of the trade war is not beneficial for China, the United States, nor to the interests of the people of the world.”
The Vice Premier then vowed, “We will continue to create a good investment environment, protect intellectual property rights, promote the development of smart intelligent industries with our market open, resolutely oppose technological blockades and protectionism, and strive to protect the completeness of the supply chain.”
China blinks, seeks to end trade war https://t.co/VISjWywKGr
— Conservative News (@BIZPACReview) August 26, 2019
The Trump administration is reportedly open to squaring off an agreement as peaceably and readily as possible, CNBC reports.
American Treasury Secretary Steven Mnuchin definitively said the U.S. would sign an agreement “in a second.”
“We do not have free trade with them,” Mnuchin said on Sunday via CNBC. “It’s a one-way street: They have free entrance into our markets, our investments, our companies and we do not have the same thing there. That’s the only reason why we are in this situation with China.
“If China would agree to a fair and balanced relationship, we would sign that deal in a second,” he clarified.
White House economic advisor Larry Kudlow echoed these sentiments, saying Trump needed to be bold to wear down China’s persistence: “Sometimes you’ve got to take stern measures.”
“Come home to America, we’ve got the best tax system, we’ve got the best regulatory system, it’s an easy place to make money, the best technology in the world. Come home. That’s what the president is saying,” Kudlow continued.
And, as for real market-impact, the down jumped 300 points immediately after hearing the news (also per CNBC):
The Dow Jones Industrial Average traded 303 points higher, or 1.2%. The S&P 500 climbed 1% while the Nasdaq Composite advanced 1.2%.
U.S. crude gained more than 1% on hopes tension between the two sides will ease. The dollar, meanwhile, rose 0.4% against a basket of rival currencies. The 10-year Treasury yield traded marginally higher.
Speaking to reporters at the Group of Seven (G-7) meeting in Biarritz in France Monday, Trump said the two countries would start talking very seriously.
“China called last night our top trade people and said ‘let’s get back to the table’ so we will be getting back to the table and I think they want to do something. They have been hurt very badly but they understand this is the right thing to do and I have great respect for it. This is a very positive development for the world, ” Trump said.