With the United States of America demanding that China makes concrete changes to its existing laws, Beijing has finally retaliated and made it clear that China stands as a sovereign country and no external country can have a say in its functioning. The People's Daily, a newspaper controlled by the ruling communist party noted that,
"At no time will China forfeit the country's respect, and no one should expect China to swallow bitter fruit that harms its core interests."
The trade talks suffered a major setback last week when China proposed extensive revisions to a draft agreement that was decided upon. Beijing wanted to amend the draft that stated that China was ready to enforce new policies on various issues ranging from intellectual property protection to forced technology transfer and others. With the Chinese taking a tough stand, the U.S. hiked tariffs on more than $200 billion worth of Chinese goods. The United States blamed China for reneging on commitments that were agreed upon after months of negotiating. Trump defended his decision by tweeting, "We are right where we want to be with China," suggesting that people purchasing Chinese goods should either switch to domestic manufacturers or buy from other nations.
Meanwhile, finance giants Goldman Sachs opine that the burden of the trade tariffs on Chinese goods, which came into effect last year, has fallen entirely on American households and enterprises. The effect on consumer prices was much greater than expected and it is partly attributed to the fact that Chinese exporters have not lowered their prices despite tariffs, to better compete in the US markets.
Over the last week, speculations were running rife that US and China would come to an understanding through the talks and sign a pact during the G20 summit in Japan late June. With the latest developments, both sides have announced that there are no further "talks" as of now. A trade war between these superpowers might affect multiple countries across the globe. It remains to be seen if the trade war between the countries will come to an end soon.
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