By Harsh V. Pant
The US-China trade war seems to be coming to an end as reports of a possible deal have gathered momentum in recent days. US secretary of state Mike Pompeo has expressed optimism that trade talks with China aimed at ending tariffs on hundreds of billions of dollars worth of products will be successful. Treasury secretary Steven Munchin has also suggested that the two sides were getting closer to a trade deal and White House economic adviser Larry Kudlow has underlined that “the progress (between the two countries) has been terrific”. Negotiations are reportedly in the last leg as the two sides plan a summit for the end of March at Mar-a-Lago, US President Donald Trump’s Florida resort. Despite the hype, it still remains to be seen if the US-China trade deal actually goes through.
If a deal is reached, the US would roll back tariffs on at least $200 billion in Chinese goods while China would reduce industry-specific levies like those on autos. Meanwhile, China is also gearing up to pass a new foreign investment law to provide a level-playing field to global investors with legal safeguards on Intellectual Property Rights (IPR) and technology transfer, thereby meeting a key demand of the Trump administration. This draft foreign investment law will be submitted to the National People’s Congress of China for review and is likely to be put to vote soon.














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