The great economic rivalry between China and the US appears to be simmering down as the trade teams of both countries have officially agreed to maintain close communication.
In a virtual meet, Chinese Vice Premier Liu He and US Treasury Secretary Janet Yellen came to this conclusion while discussing about macro-economic policies, as per the Chinese Commerce Ministry.
The representatives of both countries have vowed to work towards strengthening their communication in order to neutralize the trade war that has not only had an impact over their economy but has also shown significant decrease in the global economy, as per the World Bank.
China's Commerce Ministry spokeswoman Shu Jueting gave an official statement at a press conference wherein she stated that the Chinese have objected to the Section 301 investigation and further 'urged' the Americans to not introduce new trade sanction measures.
"China always opposes the trade protectionism such as the Section 301 investigation and urges the U.S. to stop introducing new trade sanction measures," Shu said.
The US Trade Representative (USTR) had initiated a four-year review of Section 301 tariff actions on imports of certain products from China, these tariffs were originally implemented by former President Donald Trump.
Section 301 of the Trade Act of 1974 states that the USTR can investigate and take appropriate action to 'enforce' US rights under trade agreements as well as examine certain foreign trade practices.
The roots of the China US trade war can be traced back to Shanghai Communique signed by both countries in February 1972 to improve their relations. The trade between Beijing and Washington grew rapidly as the years progressed but the latter appeared to buy far more from China than the other way around.
Soon there was imbalance of sorts established which did not settle well with Trump, as per the Marketplace.
As per economists, Chad Bown, senior fellow at the Peterson Institute for International Economics in Washington D.C., the ex-president imposed a set of tariffs with some other restrictions on exports from China that sowed the seeds of the trade war that we see today.