US, China ready to sign a deal after a tough fight to stop the trade war
Washington … News Time
The United States and China are ready to sign an agreement after a tough fight to stop the trade war; it is beginning a period of trial of reconciliation and reconciliation between the two largest economies in the world after several months of clashes that hampered global growth. The first phase of the deal was formally reached at a White House event, the result of a limited agreement between Washington and Beijing at the time when both countries worry about economic and financial loss from increasing tensions. Under the deal, China promised to buy US $ 200 billion worth of American goods in exchange for a slight reduction in tariffs and prevent further disciplinary action indefinitely which includes agricultural commodities, currency and other intellectual property commitments. However, this agreement is little more than a lasting peace to end a two-year trade war; this has led to a decline in trust between the two countries and the business side on both sides of the Pacific. This gives President Donald Trump a wider cut in tariffs on $ 360 billion of Chinese products, and gains some Chinese advantage over key aspects of their economic model, which has left America the most frustrated, from the use of subsidies to widespread cyber migration. The deep strategic rivalry between the two powers is unlikely to stop, accelerating during Donald Trump’s presidency in terms of superiority in advanced technology, from military affairs and fiveG communications to artificial intelligence.
Ali Wayne, a policy analyst for a think-tank Rand Corporation in Washington, said the agreement was welcomed, but that doesn’t negate the fact that the two countries look at each other from a confrontational point of view. The US considers China’s economic boom a threat to its national security and its allies and partners, meanwhile, China is considering the inevitability of local innovation and the emergence of alternative export markets. The deal will offer investors some flexibility in financial markets, as negotiations have begun between the two governments, the deal is currently being dramatically viewed. However, U.S and Chinese officials have given some clear hints about the timing and likelihood of the second phase of negotiations, which can ensure a bit more business with supply chains, production and consumers in both countries. China is hoping for the end of tariffs more quickly following the deal, but the US is resisting making sure that China respects its promises. Donald Trump has said that the second part of the negotiations cannot be agreed until after the November 2020 US presidential election.
Nathan Sheets, chief economist at New Jersey-based PGIM Fixed Income, said the deal eliminated some key doubts from a market perspective. But from a deep economic point of view, I suspect it is enough for companies to start investing again, withdrawing money from their pockets and starting spending. They will wait to be clearer. The deal has already been declared a political victory by Donald Trump, while he vowed to take a tough stand against China during his presidency and the 2016 presidential campaign. But it is unclear whether the gambling will benefit them during the second term of the presidential campaign.
Donald Trump criticized himself for the fact that the trade war was economically ineffective, affecting the states that relied on agriculture and manufacturing to some extent, though it did not suffer a complete recession. Democratic critics are likely to pressure that Donald Trump’s whipping of all has yielded some big Chinese concessions. Senator Charles Schumer, a high-ranking Democrat in the Senate, said President Trump was going the easy way. They are settling for a weak, temporary agreement on the value of American business, American farmers and American labor for years to come. Significant goodwill gestures were made by the US before the deal was reached. US Treasury Department eliminates currency manipulator status, which China’s Deputy Prime Minister Liu Hei announced as he arrived in Washington last year as an escalation of tensions.
Stephanie Segal, a senior fellow in political economy at the Center for Strategic and International Studies, said that the United States too had adopted a stress reduction approach. He said that the Chinese government is trying to re-open the dialogue at all levels, contacts are the answer. Even in an interview to the Fox Business Network, Robert Lighthizer, a tough US business representative, said he was not trying to separate the economies, but rather created a rule that would be useful for both countries. “People can criticize, but it’s not at all disturbing to me,” he said. I think President Trump has a purpose. They have worked hard on us and we have taken a big step forward.
