China and the US will establish “enforcement offices” to oversee the end of their trade war, according to the Financial Times.
The special measures, which were revealed on April 10 by US Treasury secretary Steven Mnuchin following discussions with China’s vice-premier Liu He, represent another step towards the resolution of a conflict that has clouded global trade with uncertainty.
The dispute began in April 2017 and has resulted in duties worth US$400 billion being slapped on both US and Chinese goods.
PTI previously reported that 25% tariffs were due to be placed on another $200 billion worth of Chinese exports in March 2019, but this action was delayed after US President Donald Trump suggested a deal could be struck between the two superpowers.
The FT has now revealed that Mnuchin and US trade representative Robert Lighthizer are preparing to finalize a deal with Liu by May 2019, which would “reset the US-China economic relationship” and alleviate pressure on the global economy.
BREAKING: Chinese Vice Premier Liu He says he supports enforcement mechanisms in the US China trade deal, offers major soybean purchase (details still unclear) Mnuchin and Lighthizer go to China early Feb. No Xi-Trump summit planned yet. @CGTNOfficial @cgtnamerica pic.twitter.com/f5iQbIOqbs
— Jessica Stone (@JessicaStoneTV) January 31, 2019
In order to reach an understanding, US officials have asked for guarantees from China that it will abide by its commitments and accept retaliatory action if expectations are not met.
Mnuchin, speaking to CNBC, said: “We’ve pretty much agreed on an enforcement mechanism. We’ve agreed that both sides will establish enforcement offices that will deal with the ongoing matters. This is something both sides are taking very seriously.”
While talks are progressing on the enforcement issue, China is still calling for existing tariffs on their goods to be lifted by Washington, a move which the White House is currently unlikely to accept.