On 7th January, China and the United States, initiated a fresh round of discussions in Beijing in order to settle their harmful trade dispute. Last year, both nations enforced levies worth billions of dollars’ against each other’s goods. The two-day discussions indicate the first formal meeting of the two countries; since both nations admitted to abstain from any further tariffs for 90 days.

The meeting comes amidst growing worries about the effect of trade tensions on the global economy. The discussions are being managed by various groups in the fields of non-tariff measures, intellectual property, industrial, and agricultural purchases.

Jeffrey Gerrish, Deputy US Trade Representative is heading the US delegation. However, both sides refused to comment on how the discussions are progressing. But a spokesperson of Chinese foreign ministry stated that China sincerely wants to solve the dispute on the basis of equality and mutual respect. He stated that the trade battle is not only bad for China and the US but also for the world.

Although the temporary armistice offered some relief, there is apprehension over the likelihood of any progress at the meeting in Beijing. According to an economist, the bone of contention would be industrial policy and intellectual property rights.

In December, the White House stated that the two sides would discuss fundamental changes regarding forced technology transfer, safeguarding intellectual property, non-tariff barriers, cyber theft, and cyber interruption. The US stated that China’s unjust trade practices have to lead to big trade debt and charged China of intellectual property theft.

Donald Trump President of the United States stated last year that tariffs on another $267billion (£209bn) worth of Chinese goods are ready to be enforced. In case, no deal is reached before the March deadline US would be increasing its 10% tariffs on the US $200 billion of Chinese goods to 25%/

In Asia, on Monday, the market rose over the assumption that the meeting would help to deal a host of critical issues. The Hang Seng Index in Hong Kong rose 0.82%, whereas the Shanghai and Shenzhen exchanges were up 0.72% and 1.71%, respectively.