Why this is important to Wisconsin businesses: The dialogue is remaining positive, with negotiations still under way and hopes expressed that a win-win solution can be reached.
In June, in response to the higher tax rate imposed on Chinese goods by the U.S., China announced that it would also impose a 25 percent higher tax rate on goods imported from the U.S., effective in July. According to a report that appeared in the Wall Street Journal, China indicated that if this move were reversed, China would purchase $70 billion worth of agricultural, manufactured and energy products from the U.S.
Although news reporting the trade friction between China and the U.S. has spread through both countries, effective negotiation between the U.S. and China can possibly bring relief to the conflict. As the report by the Wall Street Journal suggested, China’s moves were a reaction to the U.S. government’s policy, and China still wishes to import goods from the U.S.
Chinese President Xi Jinping has consistently spoken of finding win-win partnerships between the two countries. He has also said that China’s diplomatic work should promote world peace and common development as its main task, and should work toward a vision of a shared future of humankind while safeguarding China’s sovereignty, security and development interests. He has voiced a desire for China to promote international connections, signaling an interest in increasing foreign trade—and Wisconsin companies can be part of this.