Chinese and American flag on stand during the first Chinese International Export Fair in Shanghai, taken on November 6, 2018
Johannes Eisele | AFP | Getty Images
PAGE – China still calls on the US to abolish tariffs as part of any first phase agreement as trade talks between the two largest economies in the world drag on.
'The trade war began with the addition of tariffs and must be completed by the abolition of those additional tariffs. This is an important condition for both parties to reach an agreement, "Chinese Trade Ministry spokesman Gao Feng said at a weekly news conference Thursday, according to a CNBC translation. [1
all the colossal side is imposing billions of dollars worth of goods on the other, and both sides are now in the process of sealing a so-called "phase one" deal to deal with some disagreement issues, with Chinese President Xi Jinping and US President Donald Trump expected to meet in mid-November at the Asia-Pacific Economic Cooperation Summit in Santiago, but Chile canceled the event in late October because of internal unrest.
Gao did not specifically address Trump's comment last Friday that he did not agree to abolish tariffs on Chinese products. The Department of Commerce spokesman also did not comment directly on news reports that the challenge to reach a trade deal was China's reluctance to write down specific quantities of farm purchases in the US.
Meanwhile, data and anecdotal evidence suggest businesses on both sides have tried different ways to handle tariffs. For some companies in America, diverting production or extracting imports is an option.
"From a regional point of view, we are seeing a massive increase in exports to the United States from markets such as Vietnam and Taiwan," Nick Maro, a global trade leader at The Economist Intelligence Unit, said in an email Thursday.
"However, it is unlikely that any economy will have the existing production capacity to fully explain this story, which indicates that transport can play a role," he said. "The biggest risk here is that this type of avoidance tariffs are illegal under US commercial law, and therefore some companies – and some countries – may be exposed to criminal commercial conduct in response to the US. "
On the other hand, many Chinese companies have chosen to assume what tariffs they can instead of
Product sales for Amazon.com Chinese and US sellers in the US have increased despite the trade tensions, according to e-commerce and software company SellerMotor, but while the average price of products sold by Chinese sellers , rose 29% between October 2017 and October 2019, and the price of products sold by US sellers increased 35% over the same period, data show.
The SellerMotor analysis tracks about 1 million Amazon.com products in the US, half from US sellers and the other half from Chinese sellers.