The U.S. tariffs on Chinese merchandise would continue endlessly, a former American ambassador to China forecasted recently. Max Baucus—former Democratic Senator—said to CNBC, “I truly believe that we are in a new normal here with no rollbacks and no increase. Possibly Huawei gets some ease and maybe we get supplementary agriculture products to procure by China, the U.S. products purchased by Chinese that is going to be about it.” His remarks came following the Wall Street Journal stated that Steven Mnuchin (Treasury Secretary) urged American dealers of Huawei look for licenses to restate sales to the Chinese telecommunication company.
Baucus positioned a high degree of significance on Huawei in the superior trade spat. Huawei has been put on the U.S. DOC’s (Department of Commerce) “Entity List,” which prohibits the Chinese technology giant from purchasing components and parts from American firms without the U.S. government approval. Baucus said, “The chances of a deal rely very much on the level to which Huawei is capable of buying high technology products from American firms. I feel China is going to be focusing very closely at that.” He further added, “But there is no question as both sides need a deal. For Trump, it is politics, it is not policy. He hopes to get re-elected, so he is going try to motivate the Chinese to attain some kind of an agreement on the point of the election so the stock market hits a boost.”
Speaking of trade battle, recently, Walmart’s supplier stated that Chinese companies are in “desperate” circumstance. The world’s biggest supplier of consumer merchandise stated that China’s companies are getting “desperate and urgent” as worried US retailers speed up a move out of the nation in the middle of heightened trade tensions.