Prospects of a US-China trade deal remain remote
(Baonghean.vn) - US President Donald Trump and Chinese President Xi Jinping have agreed to restart negotiations to resolve the trade war between the two countries, but the prospect of reaching a final agreement remains remote.
Analysts say that even if the two sides reach a trade deal after the US and Chinese leaders agreed to a "truce" during a bilateral meeting on June 29 in Osaka, the competition for global influence between the world's two largest economies will continue.
While Beijing may try to appease President Trump with some concessions ahead of the 2020 US presidential election, it is unlikely that China will be able to resolve the structural differences between its state-dominated economic system and the US-protected market economy.
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| US President Donald Trump and Chinese President Xi Jinping. Photo: Getty |
"The problem here is that the two sides are still quite far apart," said expert David Dollar of the Brookings Institution. "China is gradually opening up markets such as financial services and the auto sector, as well as taking steps to improve intellectual property protection. However, it is not willing to make the profound changes that the US demands."
He was referring to Washington's push for Beijing to end "Made in China 2025" - a state-led industrial program aimed at making the Asian powerhouse a dominant force in global high-tech manufacturing - and change laws related to state-owned enterprises and industrial policy.
David Dollar also said: "The Trump administration needs to decide whether the US wants a practical concession or wants to escalate the trade war."
Other experts share the view, saying that the strategic competition between Washington and Beijing - also increased by China's global expansion ambitions through the Belt and Road Initiative.
Brad Glosserman, an expert at Tama University in Tokyo, said China's 2025 plan raises suspicions that Beijing is seeking to use its laws and policies to exploit the US-backed international order and establish itself as a leading power in the 21st century.
According to Mr. Glosserman, it is worth noting that the Trump administration's tough stance on China's trade and industrial policies also receives support from the US Democratic Party./.
