The United States and China are set to resume trade talks in the coming weeks, as new reports show that China has added around 100 tons of gold to its reserves in the last nine months.
The US and China have said they plan to hold trade talks in October, but that also happens to be when the US is set to increase tariffs on Chinese imports once again.
Trump’s treasury secretary, Steven Mnuchin, confirmed on Monday that meetings are set to be held early next month here in Washington, which will mark the first high level talks in person between US and Chinese officials since July.
“I expect the governor of the People’s Bank of China to come over for these talks. So part of the conversations we will be having with them is around currency and currency manipulation,” Mnuchin said.
He also downplayed concerns that the US is heading for a recession in the coming months, and he insisted the US economy is strong, and China is the country that is struggling.
“I think there’s no question the U.S. economy is in very good shape. As we look around the world, there’s no question that China is slowing, Europe is slowing. The US is the bright spot of the world,” Mnuchin said.
China’s commerce ministry also released a statement and said “Lead negotiators from both sides had a really good phone call,” where they agreed that they will “strive to achieve substantial progress” during the 13th set of high-level negotiations between China and the US.
Meanwhile, as the Trade War has continued, China’s central bank has added around 100 tons of gold to it reserves in the last nine months, bringing the country to its highest level of gold holdings in six years.
Experts have noted that the restrictions from the trade war have given China an incentive to diversify, and “with increasing political and economic uncertainty prevailing,” gold has provided an ideal hedge that attracts central banks around the world.
But even with the promise of trade talks in the coming weeks, the Trump Administration is not backing away from moves to impose tariffs on virtually all remaining imports from China. The latest round, which went into effect on September 1, marked the start of the Trump Administration’s plan to impose tariffs on the remaining $300 billion dollars’ worth of Chinese imports, which specifically target consumer goods.
China has also continued to retaliate, and new tariffs from Beijing on $75 billion dollars’ worth of US imports that went into effect this month, marked the first time China targeted crude oil.
Even though the United States and China are pledging to move forward with trade talks, concerns remain about just how much progress they will be able to make, especially as both countries continue to impose new tariffs. Meanwhile, President Trump has warned that if he is re-elected, China will face an even tougher U.S. negotiating stance.