US-China interim trade deal hamstrung by fundamental differences, experts say

Two sides ‘not on the same page’ on issues such as the removal of tariffs, researcher says

Beijing will not buy agricultural goods it may not need ‘and definitely will not agree to it being written into a deal’, academic says

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China and the US still have some fundamental problems to resolve before they can reach a trade deal, observers say. Photo: AFP

Published: 9:00pm, 16 Nov 2019Updated: 11:59pm, 16 Nov 2019

A shared refusal to budge on key issues means China and the United States still have work to do to reach an interim trade agreement, even as the deadline for the next round of US tariffs draws ever closer, observers say.

While Beijing is sticking firm to its demand that a deal must start with the removal of America’s punitive tariffs on its products, US Commerce Secretary Wilbur Ross said in an interview with Fox Business Network on Friday that US President Donald Trump had not yet agreed to such a move.

“This shows that China and the US are still deeply divided,” said Luo Zhiheng, chief macro researcher at Evergrande Research Institute, a think tank affiliated to the Chinese property developer that shares its name.

The two countries did not appear to be on the “same page” over the withdrawal of tariffs, he said.

The cautionary note came despite Beijing and Washington sending positive signals that consensus on a phase one deal focused on less controversial elements of the dispute was close.