U.S. stocks took a big hit Tuesday afternoon after the Trump administration announced that it will be placing visa restrictions on certain Chinese officials ahead of Thursday’s scheduled trade talks. The U.S. State Department issued the visa restrictions
The U.S. response comes just hours after the Chinese Minister of Commerce issued a statement warning the U.S. to stay out of its domestic affairs while negotiating the trade deal.
We strongly urge the U.S. to immediately stop making irresponsible remarks on the issue of Xinjiang, stop interfering with the wrong actions of China’s internal affairs, and remove relevant Chinese entities from the list of entities as soon as possible, a spokesperson from the Ministry of Commerce said. The uptick in heated rhetoric does not bode well for the trade talks that are scheduled to begin October 10.
The planned new round of China-US high-level economic and trade consultations is expected to cover a wide range of topics, with business and trade experts hoping the two sides will reach a speedy resolution amid weak global market sentiment.
At the US side’s invitation, Vice-Premier Liu He will lead a delegation to Washington for the next round of talks on Thursday and Friday, said the Ministry of Commerce.
Liu will meet United States Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin, the ministry said in a statement on Tuesday.
According to the statement, the Chinese delegation will include officials from the ministries of commerce, finance, industry and information technology, and agriculture and rural affairs, as well as the central bank and the National Development and Reform Commission.
Yang Weiyong, an economics professor at the University of International Business and Economics in Beijing, said the Chinese delegates’ expertise will reflect to some extent the agenda to be discussed in the consultations.
Topics of discussions may cover trade, financial market opening-up, intellectual property rights and agriculture, Yang said.
No matter how many obstacles that may stand in the way, I hope the two sides will seize the opportunity this time and create a win-win outcome, Yang said.
Both negotiating teams need to be flexible during the talks in order to work out a relatively comprehensive agreement.
Conte calls to end trade wars
Italian Prime Minister Giuseppe Conte urged on Tuesday to make efforts to avoid a trade war between the United States and the European Union, saying that Washington’s decision to impose new tariffs on EU goods could be particularly damaging to national producers.
We should admit that the US tariffs on European goods will have severe impact on Made in Italy products. Therefore, we will work with the utmost determination and conviction to protect our economic interests.
We will do this through negotiations with our American allies and in synergy with the European Union , Conte said at his joint conference with Prime Minister of Belgium Charles Michel in Rome.
The Italian prime minister noted that a rise in protectionism in the relations between Washington and Brussels would be the worst scenario, adding that there was a need to prevent the trade war between the partners.
Bulgarian economist Georgieva, 64-years-old, was giving her first major speech as head of the IMF.
She is the second woman to lead the IMF, and the first Managing Director from an emerging market nation in the 75-year history of the Fund. “So why the slowdown in 2019?
There are a range of issues and one common theme across these issues: Fractures,” she told reporters, political leaders and diplomats gathered at the Fund headquarters.
“I will start with trade. We have spoken in the past about the dangers of trade disputes. Now, we see that they are actually taking a toll. Global trade growth has come to almost a standstill,” Georgieva announced.
The IMF has forecast that measures already announced may cut as much as 0.8 percent off the global economy in 2020 alone.
“In part because of the trade tensions, worldwide manufacturing activity and investment have weakened substantially. There is a serious risk that services and consumption could also soon be affected,” she added.
She takes the reins at an uncertain time for the global economy with a landscape of slowing growth and rising trade tensions. “Even if growth picks-up in 2020, the current rifts could lead to changes that last a generation — broken supply chains, siloed trade sectors, a “digital Berlin Wall” that forces countries to choose between technology systems,” said the former CEO of the World Bank.
“Our goal should be to fix these fractures. Our world is intertwined. So our responses must be coordinated.
The IMF is expected to unveil its forecast for global growth when it publishes the World Economic Outlook October 15th at the beginning of the Annual Meetings.