During Presidential race, Trump might have talked tough on China, but now Trump has softened his tone ahead of the meeting with Chinese President Xi Jinping on Thursday.
With about $600 billion in goods going back and forth between U.S. and China, since last year, China is currently the trading partner with the U.S. Amounted to only $115.8 billion American goods sold in China, Chinese have an edge by selling about $462.8 billion of its goods.
Both the countries operate under the terms of World Trade Organization (WTO) and U.S. currently does not have free trade deal with China. This trade deal between two countries will determine how goods and services will flow across the international borders. Some of the things that deal may include are product quotas, import taxes, work & labor conditions, environmental standards, and guidelines for settling disputes.
Why is this trade deal controversial? U.S. companies are in pressure to be more competitive because of the rising imports, and they respond in a variety of ways. Some companies cut jobs, due to which U.S. has lost about 5 million manufacturing jobs since 2000.