Reducing Trade Tensions on Both Sides

Even more international interest was focused on U.S.-China trade talks last week. China’s official news agency Xinhua greeted the talks’ completion with the headline: “China, U.S. pledge no new trade protection measures.” Since the Chinese worry about climate-related trade measures, this reassurance is important to bringing both countries closer to a climate deal. Similarly, the U.S. worries about Chinese domestic controls and subsidies, and the Chinese agreed to lift an important control on green technology imports. Chinese Trade Minister Chen Deming announced that China would no longer impose a 70% domestic content requirement on foreign wind turbine producers in China.