US businesses show lack of confidence in US-China deal

Lam Vy• November 4, 2019 15:54

(Baonghean.vn) - The US business community in China has expressed disbelief that an interim deal can solve fundamental problems related to the Chinese economy.

Ông Tim Stratford – Chỉ tịch phòng thương mại Mỹ tại Trung Quốc. Ảnh Reuters

Mr. Tim Stratford – President of the American Chamber of Commerce in China. Photo: Reuters

Tim Stratford, president of the American Chamber of Commerce in China, said he believes the “phase one” deal currently being discussed by both sides could prevent the US-China trade war from escalating further, but he fears Washington does not have enough “leverage” to force Beijing to restructure its state-led economic model.

“With the election coming up next year, US President Donald Trump looks set to use the deal to further his political ambitions rather than address the systemic issues that worry the US business community,” Stratford said.

According to Mr. Stratford, political events in the US next year will pose “uncertainties” for the fate of the temporary US-China trade deal.

“If you were President Trump, would you want to retaliate against China again because of the lack of progress in phase two? If you did, it would undermine the agreements that were made in phase one.”

American Chamber of Commerce in China President Tim Stratford.

Meanwhile, a former US trade representative said on the sidelines of a business forum in Beijing that “the interim deal is very helpful, especially for American farmers, but it’s not really what we’re looking for.”

Vice Premier Liu He, head of China's trade negotiation delegation, met with US President Donald Trump at the White House last month. Photo: Bloomberg

After US and Chinese trade negotiators met in Washington last month, US President Trump said the two sides had made tremendous progress and they were preparing for a “phase one deal”.

The deal is expected to include China buying more agricultural products from the US and taking steps to further open its financial services market to US companies. For its part, Beijing wants the US to cancel a new round of tariffs – on a range of Chinese goods, including laptops, smartphones and toys – that were scheduled to take effect on December 15.

In an interview with Bloomberg on November 3, US Commerce Secretary Wilbur Ross expressed optimism that the two countries would reach an agreement this month, and said licenses would soon be issued to US companies to sell materials to Huawei.

Mr Ross revealed that Iowa, Alaska, Hawaii and several locations in China could be the sites for the signing ceremony. The US Secretary of Commerce also called the trade agreement between the two sides “particularly complex” and said the US “makes sure that each side has a precise, clear and detailed understanding of what each side has agreed to”.