Phase 1 of the U.S.–China trade truce includes a commitment for China to buy $200 billion of American goods and services by 2021 and preserves the bulk of the tariffs on $360 billion of Chinese goods. [Read the full Better MRO article here]
The current easing of trade tensions is only part of the story. Phase 2 negotiations promise to be charged, says Jason Alexander, principal and industrial sector senior analyst at RSM, which advises middle markets.
The U.S. and China still need to resolve some of the thorniest issues on the table, including disputes over digital trade, cybersecurity and non-tariff barriers to U.S. manufacturers and service providers.
Moreover, the new agreement also does not address China’s controversial use of subsidies and state-owned enterprises to boost steel and solar panel industries.
“Overall, this part of the deal didn’t really address the big things people are talking about,” Alexander says. “The harder issues remain.”
What concerns do you have about the latest agreements?