Currency Pact in Trade Talk will be an Integral Part of Partial Deal
Trade negotiations continue between the United States and China. Currency pact is one of the key issues to be discussed.
A currency pact has already been agreed with China, says the White House. It was agreed early this year, as the first phase of trade talk with Beijing.
The talks between the two countries had stopped after many failed attempts. The last time that top officials had got together for negotiating trade talks was in July.
Vice Premier Liu He has led his team from China to arrive at Washington to hold talks on Thursday. The U.S. has top officials led by Robert Lighthizer, the U.S. Trade Representative along with Treasury Secretary Steven Mnuchin. These officials have been heading their teams for the past one year.
The currency pact between the two countries China and the U.S. that was agreed in February has not been made public. Broad trade talks between the two countries came to a halt in May. But in August, President Trump had declared China as a currency manipulator.
If the currency pact comes off successfully, the tariff hike planned for next week may not occur, say people associated with the talks.
Currency pact, forced technology transfers, and intellectual property are the key issues that continue to be sticking points between the two countries.
A currency pact has been drawn with other countries like Canada and Mexico to bring in transparency in currency operation, earlier.
Just ahead of the talks, the Trump administration had blacklisted 28 technology firms from China, for oppressing the minorities in Xinjiang. The U.S. has planned to increase tariffs from 25 percent to 30 percent on $250 billion worth of Chinese imports if talks do not go well.
Offshore yuan saw an increase of 0.3 percent, increasing after earlier losses. Markets whipsaw, as anticipation arises regarding the outcome of the trade talks between Washington and Beijing.