OREANDA-NEWS. Washington and Beijing have tentatively agreed to take a pause in the trade war ahead of the G20 Japanese Osaka summit in order to resume negotiations on the settlement of disputes. This was reported by the Chinese South China Morning Post and American Politico, citing sources. According to publications, each of the parties in the coming weekend will make a separate statement to the press. The agreement reached to date will allow the United States to postpone plans to approve new duties on Chinese products to 25% for another $ 300 billion.

One of the interlocutors of the Chinese newspaper said that Trump’s decision to pause the introduction of additional fees was the price to meet with Chinese President Xi Jinping in Osaka. The head of administration, Donald Trump, has previously warned that Washington will introduce new duties on Chinese goods if Xi Jinping refuses to come to the G20 summit.

“However, the reality is that President Trump can always change his mind. But the truce seems to have been reached”, said a Politico source. It remains unclear how long this pause in the trade war between the two largest world economies can last. According to two sources from the South China Morning Post, at least six months will be allocated to achieve a trade agreement.

China and the United States have been negotiating to resolve trade disputes since the beginning of the year, but now they are at an impasse. Due to the absence of any progress towards settlement in May, the United States raised duties on Chinese goods from 10 to 25% in the amount of $ 200 billion. In response, China introduced similar measures in relation to American goods that enter the Chinese market. In the first five months of 2019, trade between China and the United States decreased by 14.6%.