What’s next after the US-China ‘phase one’ deal?

The “phase one” trade deal between Washington and Beijing was the result of long, fraught negotiations. “Phase two” is likely to be just as bumpy and unpredictable. The agreement signed by President Donald Trump and Vice Premier Liu He in Washington on Wednesday marks a ceasefire in the nearly two-year-old trade war. But many questions remain. Here are some of them:

Who won?

The deal “makes both countries look good”, Moody’s Analytics economist Xu Xiaochun told the news agency. The US president, who faces an impeachment trial, can point to the pact as a success in his campaign to win a second term in office this year. For Chinese leader Xi Jinping, it removes a thorn in his side as he already has to deal with other pressing issues including political unrest in Hong Kong and a slowing economy.

Under the deal, Beijing agreed to import $200 billion worth of US goods, including $32 billion in farm products and seafood — a win for Trump as he will look for support from agricultural states in his election battle.

Can phase one hold?

Although China has committed to importing more, in areas from manufactured goods to energy goods, analysts noted that domestic demand might be a limiting factor. Analysts polled by the news agency says the country’s economy is expected to have slowed to 6.1 per cent in 2019, the worst performance in 30 years.

Can phase two be done before US election?

Trump said on Wednesday that he planned to visit China in the “not too distant future”. And while tariffs on Chinese goods worth hundreds of billions of dollars remain in place for now, the US leader said he would be willing to take them off “if we’re able to do phase two”.

Is this the end of tensions?

The short answer is no. The deal largely leaves tariffs in place, and it fails to address US complaints about China’s huge subsidies to state enterprises. “While it’s a start, the deal fails to cover the significant issues that prompted the war in the first place,” said Kerstin Braun, president of Stenn Group. The trade fight has also proved to be a battle for high-tech supremacy, which is likely to keep intensifying.

Whats next after the US-China phase one deal?

The phase one trade deal between Washington and Beijing was the result of long, fraught negotiations. Phase two is likely to be just as bumpy and unpredictable. The agreement signed by President Donald Trump and Vice Premier Liu He in Washington on Wednesday marks a ceasefire in the nearly two-year-old trade war. But many questions remain. Here are some of them: Who won? The deal makes both countries look good, Moodys Analytics economist Xu Xiaochun told the news agency. The US president, who faces an impeachment trial, can point to the pact as a success in his campaign to win a second term in office this year. For Chinese leader Xi Jinping, it removes a thorn in his side as he already has to deal with other pressing issues including political unrest in Hong Kong and a slowing economy. Under the deal, Beijing agreed to import $200 billion worth of US goods, including $32 billion in farm products and seafood a win for Trump as he will look for support from agricultural states in his election battle. Can phase one hold? Although China has committed to importing more, in areas from manufactured goods to energy goods, analysts noted that domestic demand might be a limiting factor. Analysts polled by the news agency says the countrys economy is expected to have slowed to 6.1 per cent in 2019, the worst performance in 30 years. Can phase two be done before US election? Trump said on Wednesday that he planned to visit China in the not too distant future. And while tariffs on Chinese goods worth hundreds of billions of dollars remain in place for now, the US leader said he would be willing to take them off if were able to do phase two. Is this the end of tensions? The short answer is no. The deal largely leaves tariffs in place, and it fails to address US complaints about Chinas huge subsidies to state enterprises. While its a start, the deal fails to cover the significant issues that prompted the war in the first place, said Kerstin Braun, president of Stenn Group. The trade fight has also proved to be a battle for high-tech supremacy, which is likely to keep intensifying.