The US and China have declared a 90-day ceasefire in their ongoing trade war to resolve longstanding disputes through talks, agencies report.
US President Donald Trump was planning to impose tariffs up to 25% on Chinese imports from Jan 1 next. However, he decided to cancel the move after talks with his Chinese counterpart Xi Jinping late on Saturday at the close of G20 summit in Buenos Aires, Argentina.
Washington’s delay in imposing tariffs comes as Beijing agreed to buy a substantial amount of US farm, energy, and industrial goods to reduce the trade imbalance between the two countries, the White House said.
China will immediately start purchasing agricultural products like soy beans from the mid-west farm belt, above, that voted for Trump.
China also agreed to impose maximum penalty on those who sell Fentanyl, a synthetic opioid, to the US by designating it as a controlled substance, the White House said. This was one of Trump’s promises to voters during his presidential campaign.
In the three months ahead, the two sides will also discuss intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft.
Wang Yi, China’s top diplomat, said Trump and Xi agreed to halt mutual increase of new tariffs. He said China is willing to increase its imports to ease the imbalance in two-way trade.
Calling the two leaders’ talks at Buenos Aires positive and constructive, Wang said by discussing issues as equals, they could resolve them within the deadline.