US President Donald Trump said that his country may reach a fair trade agreement with China, noting that Beijing has exploited America a lot in recent years, but things have begun to change recently.
Trump added in statements on Monday: “China has begun to respect America, and this is the difference.”
Trump expressed his optimism about the possibility of improving trade relations between the two countries, despite the current tensions, stressing that the trade war has not yet been resolved, and said: “We will see what we do.”
He explained that China will sit at the negotiating table, otherwise it will pay customs duties of up to 155%, adding: “If we do not reach an agreement, I will impose double duties on it.”
The US President added, “China will pay hundreds of billions of dollars if an agreement is not reached,” indicating that he may visit Beijing next year.
He stressed that China dealt with America with great respect, stressing that his country wants China to buy soybeans.
Regarding the submarine deal between America and Australia, Trump said that he would discuss it with the Prime Minister of Australia, considering that this deal might deter China.
Business development advisor and member of the World Trade Council, Abdullah Hossam, said that recent indicators issued by the US administration reflect the possibility of launching new negotiations with China, despite the announced escalation regarding trade sanctions.
Hossam explained in an interview with Al Arabiya Business that Washington’s threat to implement 100% tariffs starting next November comes as a response to the restrictions imposed by Beijing on rare earth exports, noting that this step seems closer to a “negotiated measure” aimed at reopening channels of dialogue between the two economic powers.
He added, “China will be the stronger party in any future negotiations, because it controls most of the rare minerals that the United States depends on in defense industries and advanced technology,” indicating that about 70% of Washington’s imports of these minerals come from China, and 90% of them are used in the manufacture of microchips and weapons systems.
Hossam pointed out that the recent US tariffs – 25% on trucks and 10% on buses – represent an indication that the US administration is leaving room for maneuver that may lead to a reduction in the expected fees if progress is achieved in the talks.
Regarding China’s potential demands, Hossam suggested that Beijing would ask Washington to maintain its classification as a “developing country” in the World Trade Organization, due to the trade advantages and financial support it provides. He added that the negotiations “will not be limited to the commercial aspect only, but will extend to include political and geopolitical considerations related to industrial security and global supply chains.”
The business development advisor confirmed that China has been working for some time to diversify its trade partnerships within the “China Plus One” strategy by expanding cooperation with emerging economies, in anticipation of any long-term escalation with the United States.
He continued: “Any failure to reach an understanding between the two largest economic powers in the world could cause a global economic earthquake and lead to reshaping the balance of trade and growth in the coming years.”
