mandag 12. august 2019

What Happened to the US-China Trade Deal? An agreement that once looked close now seems far off.

A deal seemed so close. As recently as May, the Trump administration and China seemed on the verge of resolving their dispute over Beijing’s combative trade policies. Then it all collapsed. A ceasefire, declared by Presidents Donald Trump and Xi Jinping in June, failed to stick.Now, global financial markets are shaking and central banks across the world are trying to cushion their economies from the worst by slashing interest rates — all in the expectation that a trade war between the world’s two biggest economies will continue to rage, probably through the 2020 U.S. presidential election.

“The U.S.-China trade talks are in serious trouble,” said Wendy Cutler, a former U.S. trade negotiator who is now vice president at the Asia Society Policy Institute. “There is less and less trust on both sides, coupled with a growing sense in both Washington and Beijing that they may be better off without a deal, at least for the time being.”