BEIJING (Oct 10): Chinese and American negotiators are set to start meeting again in Washington on Thursday in the latest round of their so-far fruitless talks to strike a trade deal. If no agreement is reached, the already slowing global economy will face another hurdle, with the US set to raise tariffs on China on Oct 15 and then on the European Union on Oct 18.
Both China and the US have scheduled further tariff increases for December, and Europe is considering retaliation against any US action. With close to US$2 trillion ($2.76 trillion) in global trade flows at risk from greater protectionism, according to a Bloomberg analysis, those protectionist actions would depress trade, make businesses more cautious and further damage global demand.
Investors are underlining what’s at stake: US stock futures slid after a report in the South China Morning Post suggested Chinese negotiators led by Liu He could cut short their stay -- a report refuted by the White House.