The so-called “phase one” trade agreement between China and the United States does not mean that the conflict between the two countries has ended. Myron Brilliant, vice-president of the American Chamber of Commerce, warns about this.
According to Brilliant, the agreement, which is expected to be signed next Wednesday, is a clear signal that the tension between the two camps is decreasing. According to Brilliant, there is more to the agreement than previously expected.
He is said to have attended a briefing on the content of the agreement, but has not yet seen the text. “The implementation of ‘phase one’ will be important to build trust and certainty,” said Brilliant.
But although the preliminary agreement “stops the bleeding,” it does not end the conflict, he says. China continues to subsidize its own industry and the US still levies import duties on several hundred billion dollars of Chinese goods. It is therefore expected that it will become a lot more difficult to expand the agreement.
Some critics also question the implementation of the current agreement. China must, as part of the agreements, substantially expand the purchase of American agricultural goods.