President Donald Trump and Vice Premier Liu He will sign the phase one trade agreement tomorrow morning at the White House, with roughly 200 people invited to attend. However, some question China’s ability to increase expected purchases, and if the agreement will stick.
The American Farm Bureau Federation says the agreement will open the market, but not exclusively to the United States. That means the U.S. will have to compete with other exporters for the expected $40-50 billion increase in annual purchases by China. Meanwhile, A U.S. Chamber of Commerce official told media members Monday the phase one agreement “stops the bleeding,” but doesn’t end the trade war.
Reuters points out that the United States has left in place tariffs on $370 billion worth of Chinese imports. Further, negotiations for a phase two deal will probably touch on more difficult issues, including Chinese subsidies for state-owned firms and industrial policies perceived to be creating an uneven playing field.