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China, U.S. move towards potential trade deal

Premier Li Keqiang |China Xinhua News photo

There is good news and potentially not-so-good news concerning Chinese tariffs, CNN reports.The world’s second largest economy is feeling the effects of the trade war with the United States.

The good news is:

Trade tensions now appear to be cooling off. US President Donald Trump said last week that the two sides are “very, very close” to a deal and that he plans to meet Chinese leader Xi Jinping for a “signing summit.”

The Wall Street Journal reported Sunday that the meeting could happen around March 27 and that the potential deal could involve the lowering of China’s tariffs on a range of US goods if the Trump administration removes some or all of the new tariffs it imposed on Chinese exports last year.

CNN Business March 4, 2019

The not-so-good news is:

The Chinese government on Tuesday predicted economic growth of between 6% and 6.5% in 2019. That’s a decline from last year’s 6.6% rate of expansion, which was already China’s weakest performance in three decades.

“There has been a more complex and severe environment facing our country’s development this year,” Chinese Premier Li Keqiang said in a speech. “There are greater expected and unexpected risks and challenges, and we have to make full preparations for a hard struggle.”

CNN Business March 4, 2019

More on CNN Business’ take on the tariff dispute