By Doug Mattushek - 12 September 2019Views : 539
There has been a positive step towards resolving the trade dispute between the United States and China.
Reuters reported that the Asian superpower took a bold decision to exempt some US anti-cancer drugs and other goods from its tariffs. The tariff exemptions were for 16 types of US products, including animal feed and lubricants.
Additionally, China held fire on a scheduled tariff hike on its exported goods.
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This could be seen as a gesture of goodwill ahead of the upcoming trade talks between the US and China in Washington, where it is hoped the parties can find a resolution to the escalating trade war.
In response, US President Donald Trump revealed that he had agreed to delay increasing tariffs by 5% on $250 billion worth of Chinese imports.
"The exemption could be seen as a gesture of sincerity towards the US ahead of negotiations in October but is probably more a means of supporting the economy," said Iris Pang, ING's Greater China economist.
As a result, the markets have responded positively, as Asian stocks rose and China's currency was up 0.27% in offshore trade.