Thursday's phone call between Chinese President Xi Jinping and U.S. President Donald Trump signals substantial behind-the-scenes progress on trade and is of great significance for both countries as well as for the entire world, a Chinese economic expert said.
In an interview with the China Global Television Network (CGTN) on Friday, John Gong, professor of economics at the University of International Business and Economics, said a call like this, according to China's customs, usually means something concrete has been achieved already, adding that it likely builds on outcomes from earlier talks in Geneva.
Following talks in Geneva last month, the world's two largest economies agreed to temporarily bring down the triple-digit tariffs, but the temporary halt is expected to expire in early August.
Gong believes the phone call would likely pave the way for further high-level trade talks though a swift resolution to the tariffs impasse remains uncertain.
"Usually, according to China's customs, a phone like this took place usually indicates that something has already been accomplished by both sides, which culminates in a phone like this at the top leader level, so I would say that this is a very significant call. I think that a lot of thorny trade related issues have already been ironed out and wait to be confirmed at the next round of talk, and I think this is going to be following the results that have already been achieved in a Geneva talk," he said.
The Chinese expert said cooperation between the world's two most powerful economies creates global stability that reassures the markets.
"The current imperative issues with respect to the trade tariffs imposed by President Trump against the entire world and I think the fact that the two leaders talk and the prospect of essentially reaching an agreement sent a strong signal to the rest of the world that indeed America is a country that can be worked with and compromise can be indeed reached after very difficult dialog, I guess. So I think it's a strong signal that this entire tariff war can indeed be brought to a conclusion through dialog and negotiation, and eventually America and its trading partners can come out as both winners," he said.
Xi-Trump phone call is of great significance for world: expert
