US government shutdown could be another obstacle to China trade war deal
- Democrats in the Senate refused to support a House of Representatives bill that included US$5 billion for President Donald Trump’s Mexico border wall
- The likelihood of an end to the trade war during a 90-day ceasefire period could also be complicated by the Christmas and Lunar New Year holiday
The likelihood of the United States and China being able to negotiate an end to the trade war during the 90-day ceasefire period has been further reduced by the US government shutdown.
Depending on how long the shutdown lasts, plans for Chinese and American negotiators to reconvene in January could be thrown into disarray, experts warned.
“The question is: ‘how long are you going to be shut down? If it’s a day or two it’s not a major disaster, it’s like a snow day, not a major problem,” said Deborah Elms, executive director at trade lobby group Asian Trade Centre.
“But if it’s shut down for a week or two weeks, this becomes a real challenge. Especially for the US-China situation, when you’re already on a tight deadline, you have major problems.”
Officials are understood to be arranging the logistics for formal talks in January, during which negotiators will try to reach a longer-term easing of hostilities in the trade war before the current ceasefire expires on March 1.