Right when you thought U.S.-China relations were improving

On Wednesday, China’s commerce ministry said the usa delegation had arrived in Beijing and the teams from both countries would discuss coming up with a consensus over the next few days.

As a result of Trump’s tariff threat, Washington is in very intense negotiations with Beijing “in a way that we haven’t been for so many years”, said the chamber chairman, William Zarit. “The president ultimately makes the decisions on trade, and when he does we announce them”.

US Commerce Secretary Wilbur Ross, second from left, and Chinese Vice Premier Liu He, fourth right, attend a meeting at the Diaoyutai State Guesthouse in Beijing, China Sunday, Jun 3, 2018. Ross declined to speak to reporters when he arrived at his hotel in Beijing.

Since the trade spat began heating up in March, China has agreed to cut import tariffs on automobiles and consumer goods.

Such curbs would violate the “rules and basic spirit” of the World Trade Organization , said a Commerce Ministry spokesman, Gao Feng. Both sides might shout as loudly as possible as if a trade war is only one step away during the window period – but finally a deal will be made at the negotiation table as if no quarrel has ever happened, at least until the next round starts.

U.S. President Donald Trump tweeted last month that he told Commerce officials to find a way for ZTE to get back into business, later mentioning a US$1.3 billion fine and changes to its board and top management as a way to penalize the company before allowing it back into business.

A source at an global trading house based in China said enquiries about USA agricultural products have increased, but buyers are still nervous. The list will include $50 billion of imports that will face a 25 percent tariff. “That is not Free or Fair Trade, it is Stupid Trade!”

The U.S.is confronting China as it picks battles on other trade fronts with some of its closest allies.

Reduced tariffs applying to imports will put (and are already putting) downward pressure on retail prices in China, according to Chinese media reports.

The actions were announced following a report by the Office of the US Trade Representative regarding China’s practices with respect to technology transfer, intellectual property, and innovation.

On Friday, China’s markets regulator said it was still reviewing San Diego-based Qualcomm Inc’s $44 billion acquisition of NXP Semiconductors.

The Pentagon has also banned ZTE products from being sold on USA military bases along with phones made by Huawei, another Chinese firm.

At the same time, trade ministers elsewhere have been deeply troubled by the Trump administration’s moves to impose tariffs on steel and aluminium imported from around the world.