The trade war between the United States and China took its toll on various markets last year as the mounting tariffs placed by the two nations proved too much to handle. It has been put on hold since last December, creating optimism in both nations. During the 90-day truce, the U.S. and China will conduct talks to find lines they can both agree on. The first of the talks began on Monday, Jan. 7. To find success between the current negotiations, both the U.S. and China will need to dive into a few specific topics.
Intellectual properties and tech issues
According to Bloomberg, there are seven key issues that need to be tackled. Firstly, the allegations that China is forcing American companies to disclose vital tech and steal intellectual property must be dealt with. The talks are going to focus on how China will handle tech transfers and intellectual-property protection in the future. It will only be a matter of whether or not China will accept the terms.
Huawei’s practices and its CFO
On the topic of tech, Chinese-brand Huawei must make changes as well after the U.S. accused the company of sponsored espionage. Huawei is on a race to 5G technology, but after the U.S. banned its products and encouraged other countries to do the same, it has been struggling to make sales. There is also the topic of the company’s CFO still being in detention after being arrested in Canada on behalf of the U.S.
The issue has even worsened now. According to Canada, China has detained 13 Canadians since Huawei CFO Meng Wanzhou’s arrest was announced. Some of the detainees include Michael Kovrig, a former Canadian diplomat; Michael Spavor, a businessman that had deals with North Korea; and Sarah McIver, a teacher who was arrested for “unlawfully working in China.” McIver was subsequently released.
China’s plan for the future involves it becoming the leading manufacturer by 2025. The U.S. opposes the plan as it could create an unfair playing field for investors. Perhaps the best solution is to force China postpone its initial end-goal and have it moved to 2035.
The rest of the issues that the U.S. and China must tackle in the trade war talks are topics regarding the state of various industries including energy, automotive, agriculture and finance. The top nations are trying to turn the tides in their favor to help their fields succeed, but in the process, they are hurting other economies. While it may seem like an impossible task, the U.S. and China must create laws and standards that are fair to them and to other nations as well.
The 90-day truce means a chance to prevent further tariffs for both countries. The U.S. and China will need to strike a deal before the truce period ends, and if they fail to do so, various sectors must brace themselves for heavier fees in the future.
Many community colleges forge ahead with major expansions
COVID-19 has impacted community colleges. It is puzzling and sad to see that some community colleges have extremely dire financial...
Apart from the rise of the Ibex35, pharma stocks fell by 2.7% in the second quarter
All listed pharmaceutical companies have advanced on the stock market, but Grifols, whose shares have fallen by more than 12%,...
Why using ESG research in COVID-19 times is important
The Corona crisis presents companies with a variety of challenges. Investors who incorporate environmental, social and corporate governance (ESG) factors...
Bitcoin course rally by 4,500%? BTC signal as before the 2017 Bullrun is back
According to Glassnode, 61.33% of the BTC offer has not moved for 1 year or more, which is a new...
The coronavirus favored the fintech sector and the digitization of Italian banks
The coronavirus crisis has affected all economic sectors. However, the fintech sector managed to thrive, thanks to the confinement measures...
Business6 days ago
How to create a video marketing strategy that gets results
Crypto6 days ago
ECTM Group launches blockchain certified sanctioning
Crowdfunding5 days ago
Two innovative SMEs raised more than €500,000 each with equity crowdfunding in June
Business5 days ago
In the year 2025 if fiat currency can survive