–US Chipmakers Can Again Sell to Huawei; China Can Resume U.S. Ag Buys
(MaceNews) – The Osaka Castle weekend agreement between U.S. President Donald Trump and China’s Xi Jinping altered the immediate trade landscape significantly, held new tariffs in abeyance “for the time being” and opened the way for another round of talks while freezing current two-way tariffs in place
–Trump said China’s Huawei can again access its supply lifeline of U.S. semiconductor chips
–Trump also said China can resume buying U.S. soybeans and other agricultural products, a boon to both sides. China had already purchased $200 million worth as an unexpected goodwill gesture in recent days.
The nearly hour and a half meeting between Trump and Xi, each accompanied by their top advisers including Ivanka Trump, hit no roadblocks and set no deadlines. Having approached the brink of an economic Cold War, the two countries seemed now ready to better assess the dire consequences another failure would bring.
“We’re right back on track. We’ll see what happens,” Trump told a news conference, describing the meeting as “probably better than expected.”
Xi was quoted as saying, “China and the United States both benefit from cooperation and lose in confrontation” and,“Cooperation and dialogue are better than friction and confrontation,”
Chinese media, prompted to carry vituperative criticisms of the U.S. – but not Trump himself – since talks broke off last month appeared to immediately switch posture to a neutral mode, carrying straightforward accounts of the meeting uncolored by negativity.
The Trump-Xi meeting completely overshadowed the rest of the G-20 meeting of heads of state, which ended with a pro-forma declaration recognizing international trade and investment as important engines of growth, jobs, productivity, innovation and development. The U.S again refrained from endorsing the declaration of the other 19 countries on the importance of counting climate change.
The cessation of talks had brought into sharp relief China’s dependence on U.S. semiconductors and whatever the future path of renewed talks, China will have elevated its quest for non-U.S. supply lines and domestic production to an even higher crucially urgent national priority.
At the same time the U.S. view of China’s past performance and future influence has broad;y darkened on a bipartisan basis on Capitol Hill and among a wide variety of trade and influence groups in a way that’s bound to reshape economic and military considerations.
Meanwhile U.S. 25% tariffs on another $300 billion in China exports will remain a threat but only a threat, sparing the world economy for that Trump said is “the time being” from what would be unavoidable price effects and suppler disruption.