The demand by US government for extradition of Meng Wanzhou, CFO of Chinese tech giant, Huawei who was arrested by Canadian authorities on their request does not seem to have affected the reasonably good start to the resumption of trade talks between China and US.
The talks which began again in Argentina recently may very well move on towards reaching a hopefully positive outcome. White House confirmed the telephonic talk between top officials of both the countries in this context though no details were given.
Reports in Bloomberg News on Tuesday revealed consideration of a proposal for reduction of tariffs from 40% to 15% on cars made in USA by the Chinese government. This would nullify to a great extent the retaliatory tariffs introduced by China on US goods in July. Reacting to the news, auto stocks recorded a rise on European stock exchanges while the New York Dow Jones rose by 1.4%.
Though the Meng case will not be taken lightly by the Chinese government who has warned of dire consequences if she isn’t freed soon; however, for now, none of the governments seem too preoccupied with it. Meng was arrested for supposed violation of Iran sanctions.
Both the issues are treated separately as China too has begun to face the heat of the damaging trade war with the United States. With the Chinese economy on the downswing the mounting trade war can worsen the situation in the country. A bigger hurdle in fact, looms in the form of dealing with the sensitive structural aspects of trade and rivalry.
Another view of opinion talks about serious Chinese retaliation if USA pursues the Meng case. The arrest of Meng Wanzhou, the daughter of Huawei founder is a matter of grave concern to China as Huawei is China’s answer to becoming a world-wide tech powerhouse. Keeping this issue separate from the crucial trade talks may not be as easy as commented by analysts at the Eurasia Group.