Thursday, Jul 2, 2020
International Finance
In the News

US, China to establish trade deal enforcement offices

US, China, trade deal, Donald Trump, Xi Jinping, Steve Mnuchin
If US firms are not allowed to own companies in China by 2025, the US will retaliate

The United States and China have agreed to establish new ‘enforcement offices’ to ensure they fulfill the terms of the trade deal which is still under negotiation, according to Treasury Secretary Steve Mnuchin. Mnuchin said the enforcement mechanism “is something that both sides are taking very seriously” to address ongoing matters.

Both countries are working on the agreement to factor in six dominant areas: forced technology transfer and cyber theft, intellectual property rights, services, currency, agriculture, and non-tariff barriers to trade, Reuters reports.

Mnuchin will meet with Chinese President Xi Jinping as soon as they are ready with the deal because it is crucial for the two leaders to discuss the matter further. However, there is no “arbitrary deadline” set for the meeting.

During a briefing in Beijing, Ministry of Commerce spokesperson Gao Feng said “In the next step, both trade teams will keep in close communication, and work at full speed via all sorts of effective channels to proceed with negotiations.”

According to Bloomberg, after a series of high-level meetings in Beijing and Washington, US President Donald Trump said the two sides are advancing towards a trade deal. The nine-month trade war between the two world countries has affected the global supply chain, impacting several other dependent economies.

 

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