fredag 12. juli 2019

What both sides need to understand about the collapse of the trade talks

Heading into May, global markets were on the rise amid optimism for an imminent trade deal between the world’s two largest economies. Throughout the spring and into that first week of May, U.S. negotiators reported continued progress on key national security issues and trade laws to reduce intellectual property theft. China appeared willing to substantially increase its imports of U.S. goods, narrow the mounting bilateral trade imbalance, open its markets to U.S. financial services, and reduce its overseas “dumping” of artificially low-cost, subsidized goods.

In China, too, expectations ran high. In early April, the state-run Xinhua news service reported that the eighth round of talks had achieved new progress in matters pertaining to technology transfer, agriculture, and enforcement. Yet barely a month later, negotiations sputtered and then stalled altogether.