Many critical issues are being addressed and agreed upon in the trade talks between the U.S. and China.
A consensus has been reached on many important issues, says Governor of People’s Bank of China Yi Gang. The monetary policy of each country will also be respected, says the Governor.
China has been depreciating the value of the Yuan, to bear the brunt of the tariff taxes imposed by the U.S. This is one of the major issues that were not getting a conclusive agreement. However, Yi along with Wang Shouwen, the Vice Commerce Minister of China has said that the trade enforcement mechanism should be a two-way agreement that is fair and equal.
The U.S. president has kept its European allies in the dark regarding the negotiations with China. The French President Emmanuel Macron had provided a suggestion at the White House that the EU and the U.S. should stay united while making negotiations with China.
However, President Trump has rejected the idea of a united front. The content of the agreement drafted has not been shared with him, though an update of the negotiations made has been provided.
Plans are being made for a summit, to iron out other issues and draft an agreement between the Chinese President Xi Jinping and U.S. President Trump.
Asian markets started the week with mixed sentiments. The dollar rose up slightly after closing lower for the weekend.
The Yuan has gone up by 2.3 percent against other currencies for the year. Further, the talks that are moving on positively between China and the U.S. have further brought in a feeling of optimism in the air.
The decision taken by the G-20 nations to not depreciate the currency for the country’s own benefit was discussed again. The need to abide by the decisions and to have proper communication on currency issues were stressed upon during trade talks.