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Cool heads needed in U.S., China talks

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The Japan Times published this editorial May 9 on the importance of calm demeanors when it comes to U.S.-China relations.

The intensifying confrontation between the United States and China significantly amplifies uncertainties in the future of the global economy. Their trade conflict should be solved by thoroughly and repeatedly having cool-headed talks.

U.S. President Donald Trump announced that, effective Friday, punitive tariffs on $200 billion (about 22 trillion) worth of Chinese goods will be raised from 10 percent to 25 percent.

Trump seemingly aims to extract further concessions from China at ministerial-level trade negotiations between the two countries that will start Thursday.

Optimistic views had recently been spreading in markets that an agreement would be reached soon during bilateral negotiations. The sudden announcement of tariff hikes reversed these views. Investor sentiment has quickly deteriorated and has caused a spontaneous, worldwide decline in stock values.

In the United States, the Dow Jones Industrial Average temporarily dropped nearly 650 points on Tuesday. On Wednesday in Tokyo, the Nikkei Stock Average also dove 321 points.


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