Phase 1 bargain will ease tensions between US and China but not end conflict

UNITED STATES (OBSERVATORY NEWS)

The first-phase bargain to be signed this week by China and the US “stops the bleeding,” but does not stop the trade war, said Executive Director of the US Chamber of Commerce Myron Diamond. It is reported by Reuters.

Brilliant said there was a “clear sigh of relief on both sides” in connection with the agreement, which is expected to be signed Wednesday in Washington, and that the depth of the first phase was more positive than originally anticipated.

“The implementation of the first phase will be important to build confidence and confidence, which will contribute to the success of the negotiations,” said Diamond.

But while the first-phase agreement “stops the bleeding,” he said, “it’s important that both sides demonstrate a commitment to moving forward in the second-stage talks.”

Brilliant noted that “there are still significant problems,” given that the basic structural issues underlying the Washington-Beijing dispute remain largely unresolved.

The US Trade Representative, Robert Lighthizer, said in December that the first-phase trade deal provides for nearly doubling US exports to China in the next two years.

The deal provides for the reduction of certain US duties on Chinese goods in exchange for China’s increase in purchases of American agricultural, industrial and energy products.

Nevertheless, US duties on Chinese imports worth $ 370 billion remain in force. In addition, the parties to the negotiations on the second phase deal are likely to discuss more complex issues, including Chinese subsidies to state-owned companies and industrial policy.

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