Tariff truce: On U.S.-China trade war

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Tariff truce: On U.S.-China trade war

U.S. and China must use the next 90 days to close the trade war in a way that benefits both
The global trade(व्यापार) war has come to a welcome pause. On the sidelines of the G20 meeting in Buenos Aires over the weekend, the U.S. and Chinese Presidents, Donald Trump and Xi Jinping, agreed(सहमत) to a 90-day truce. The two countries will try to find an amicable(मैत्रीपूर्ण) solution to the various(विभिन्न) problems plaguing bilateral(द्विपक्षीय) trade relations(रिश्ते/संबंध,), such as disputes(विचार/विवादों) over intellectual(बौद्धिक/ज्ञान का) property rights and Chinese state support for domestic(घरेलू) industries(उद्योग), through talks over the next three months. Meanwhile(इस दौरान), the U.S. will refrain(बचना होगा) from raising the tariff on Chinese goods worth $200 billion from the current rate of 10% to 25% on January 1, 2019, as planned. In return, according to the White House, China will purchase(खरीद /प्राप्त करना) agricultural and other goods from the U.S. in order to reduce(कम करना) the trade imbalance(असंतुलन) between the two countries. If talks fail, however, increased(बढ़ी हुई) tariff rates are scheduled to come into force immediately(तुरंत/फ़ौरन). It is worth noting that Canada and Mexico arrived at a compromise trade agreement with the U.S. in October, replacing(जगह) the decades-old North-American Free Trade Agreement (NAFTA). So these are signs that the global trade war that began( शुरू हुआ) earlier this year may be cooling down a little as 2018 draws to an end.

What prompted the U.S. and China to arrive at an unexpected(अप्रत्याशित), albeit(हालांकि/यद्यपि) temporary, compromise is unclear. It will be important to see if any compromise(समझौता) between the two trade giants(दिग्गजों/असाधारण शक्ति) will include(शामिल) a complete rollback of the tariffs imposed(अधिरोपित) on each other over the year. But the temporary trade truce(संघर्ष) should still offer some relief, as there have been apprehensions(आशंकाओं/डर) about the U.S.-China trade battle bringing global economic growth to a grinding halt. Signs of a significant slowdown in the Chinese economy and concerns(चिंताओं/मामला) over the negative impact(प्रभाव) of the trade war on American financial markets may have played a part in Mr. Trump and Mr. Xi agreeing to the truce — probably(शायद/संभवतया) a sober recognition(मान्यता/पहचान) of the fact that there are no economic winners in any trade war. During the upcoming negotiations(बातचीत), the U.S. is likely to press hard on China’s protectionist(संरक्षणवादी) policies aimed at favouring its domestic industries. But it is unlikely(संभावना नहीं) that China will yield(प्राप्ति/पैदावार) to such pressure as that would require( आवश्यकता/आकांक्षा करना) a seismic shift in the country’s growth policy, which till now has emphasized(महत्त्व देना) the state’s role in the economy. In fact, the Chinese government’s promise to increase imports from the U.S. is a clear giveaway of the fact that it still dominates the economy. Further, China itself is bound to draw attention(ध्यान खींचना) to the U.S.’s own protectionist policies. A compromise that will allow both sides to claim final victory in the battle would be the best outcome.

 

 

Important Vocabulary

1.Trade(व्यापार
Synonyms: business, commerce, contract, deal, enterprise
Antonyms: disagreement, idleness, indolence, misunderstanding, unemployment

2.Intellectual(बौद्धिक/ज्ञान का)
Synonyms: cerebral, creative, highbrow, mental, psychological
Antonyms: body, physical, foolish, ignorant, simple

3.Disputes(विचार/विवादों)
Synonyms: bickering, brawl, conflict, controversy, debate
Antonyms: accord, agreement, calm, concord, concurrence

4.Bilateral(द्विपक्षीय)
Synonyms: mutual, reciprocal, respective, two-sided
Antonyms: multilateral, unilateral

5.Reduce(कम करना
Synonyms: curtail, cut, cut down, diminish, dwindle
Antonyms: compliment, develop, enlarge, expand, extend

6.Immediately(तुरंत/फ़ौरन).
Synonyms: directly, forthwith, instantly, promptly, rapidly
Antonyms: later, eventually, never

7.Imbalance(असंतुलन)
Synonyms: inequality, shortcoming, asymmetry, disproportion, lopsidedness

8.Albeit(हालांकि/यद्यपि)
Synonyms: admitting, even if, even though, notwithstanding

9. Unexpected(अप्रत्याशित),
Synonyms: abrupt, accidental, amazing, astonishing, fortuitous
Antonyms: deliberate, designed, expected, intentional, planned

10.Concerns(चिंताओं/मामला)
Synonyms: burden, interest, involvement, matter, thing
Antonyms: entertainment, fun, pastime, unemployment, disinterest

11.Imposed(अधिरोपित)
Synonyms: appoint, charge, demand, enforce, establish
Antonyms: disorder, displace, forget, overlook, prevent

12.Require( आवश्यकता/आकांक्षा करना)
Synonyms: lack, crave, desire, miss, wish
Antonyms: dislike, hate, not want, have

13.Recognition(मान्यता/पहचान)
Synonyms: acceptance, admission, appreciation, awareness, concession
Antonyms: denial, disagreement, disbelief, refusal, repudiation

14.Emphasized(महत्त्व देना)
Synonyms: accentuate, affirm, assert, highlight, indicate
Antonyms: deny, lose, mumble, depreciate, forget

15.Imposed(अधिरोपित)
Synonyms: appoint, charge, demand, enforce, establish
Antonyms: disorder, displace, forget, overlook, prevent

 

 

 

Credit To The Hindu News Paper

U.S. and China must use the next 90 days to close the trade war in a way that benefits both
The global trade war has come to a welcome pause. On the sidelines of the G20 meeting in Buenos Aires over the weekend, the U.S. and Chinese Presidents, Donald Trump and Xi Jinping, agreed to a 90-day truce. The two countries will try to find an amicable solution to the various problems plaguing bilateral trade relations, such as disputes over intellectual property rights and Chinese state support for domestic industries, through talks over the next three months. Meanwhile, the U.S. will refrain from raising the tariff on Chinese goods worth $200 billion from the current rate of 10% to 25% on January 1, 2019, as planned. In return, according to the White House, China will purchase agricultural and other goods from the U.S. in order to reduce the trade imbalance between the two countries. If talks fail, however, increased tariff rates are scheduled to come into force immediately. It is worth noting that Canada and Mexico arrived at a compromise trade agreement with the U.S. in October, replacing the decades-old North-American Free Trade Agreement (NAFTA). So these are signs that the global trade war that began earlier this year may be cooling down a little as 2018 draws to an end.

What prompted the U.S. and China to arrive at an unexpected, albeit temporary, compromise is unclear. It will be important to see if any compromise between the two trade giants will include a complete rollback of the tariffs imposed on each other over the year. But the temporary trade truce should still offer some relief, as there have been apprehensions about the U.S.-China trade battle bringing global economic growth to a grinding halt. Signs of a significant slowdown in the Chinese economy and concerns over the negative impact of the trade war on American financial markets may have played a part in Mr. Trump and Mr. Xi agreeing to the truce — probably a sober recognition of the fact that there are no economic winners in any trade war. During the upcoming negotiations, the U.S. is likely to press hard on China’s protectionist policies aimed at favouring its domestic industries. But it is unlikely that China will yield to such pressure as that would require a seismic shift in the country’s growth policy, which till now has emphasised the state’s role in the economy. In fact, the Chinese government’s promise to increase imports from the U.S. is a clear giveaway of the fact that it still dominates the economy. Further, China itself is bound to draw attention to the U.S.’s own protectionist policies. A compromise that will allow both sides to claim final victory in the battle would be the best outcome.