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On Monday President Donald Trump stated that the US and China will soon resume trade negotiations as they seek to ease ongoing trade tensions. Trump has hinted that a deal is more likely after tariff hikes from both countries saw markets drop.

Trade negotiations are back

Speaking at the G-7 Summit in France, the US president lauded the Chinese Presidents and welcomed the move to reach a consensus soon.  Trump said that China had called and indicated that they were ready to go back to the negotiation table. He added that China has been hurt badly and the latest development was the right thing to do as it is a huge development for the world.

Trump further added that they were expecting to reach an agreement from the revived talks. He said that most supply chains in China are already leaving to other countries and the US has been receiving a lot of them.

The US has been trying to force China to reform its trade practices, holding that US companies are subjected to a harsh business environment in China because of issues like intellectual property theft. It is understood that US allies at the G-7 summit have put pressure on Trump regarding the tariff war with China indicating that it is threatening the world economy.

China determined to end the trade war

On Monday, China’s Vice Premier Liu He, who has been spearheading the negotiations, said that the country was ready to resolve the ongoing trade dispute by engaging in calm negotiations. He indicated that they are determined to settle the issue and avoid further escalation.

However China’s Foreign Ministry spokesman, Geng Shuang has indicated that he has not heard of a phone call between China and the US. Neither has the Commerce Ministry, which releases statements on trade, confirmed whether the call took place.

Last week Trump indicated that he was raising tariffs on $250 billion of Chinese product to 30% from October 1. He also added tariffs on another $300 billion of Chinese products which he increased to 15% from 10%. China equally imposed retaliatory tariffs on $75 billion of US goods.