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Commentary: U.S., China trade sanctions part of “deal-making” process

By Takanori Yamamoto in Washington


Trade frictions are intensifying between the U.S. and China, with both sides announcing lists of products subject to steep tariffs, giving rise to concerns about the impact of this on the world economy. However, these sanctions are not expected to go into force immediately. It is believed that behind-the-scenes negotiations to resolve this situation will continue.


U.S. President Donald Trump’s goal is to increase U.S. exports to China, in order to reduce the trade deficit with China. Threatening to impose sanctions to press China to make concessions is part of “deal-making.” It is reckoned that he actually does not want an all-out confrontation with China.


The U.S. is an important trading partner for China, so the impact will be tremendous if the sanctions are actually implemented. Since the U.S. is demanding tariff reduction on cars and the opening up of China’s financial markets, it is thought that China will consider accepting the demand and go into negotiations on the specific terms.

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