An ambitious 'phase two' trade deal between the United States and Chin...
WASHINGTON - An ambitious “phase two” trade deal between the United States and China is looking less likely as the two countries struggle to strike a preliminary “phase one” agreement, according to U.S. and Beijing officials, lawmakers and trade experts.
The 16-month trade war with China has thrown U.S. businesses and farmers into turmoil, disrupted global supply chains and been a drag on economies worldwide. Failure to address a key reason it was started is already raising questions about whether the sacrifice has been worth it. Meanwhile, many of Beijing’s trade practices that many free-market economies see as unfair remain unaddressed.
After that, China could recede somewhat on Trump’s policy agenda as he turns to domestic issues, the official said, speaking on condition of anonymity. He will probably leave other major contentious issues to senior aides, who are likely to continue pushing Beijing over the theft of U.S. intellectual property, its militarization of the South China Sea and its human rights record, the official said.
“That’s the easy stuff,” said Costa. The harder issues are “industrial espionage, copyrights, complying with those issues, privacy and security issues.” He sees a good chance that the two sides will hammer out some phase one deal, but is far less convinced that a broader deal can be reached before the election. One key problem, he said, was the continued lack of a coherent U.S. strategy for dealing with China.
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