Sino File | Don’t be fooled. The US and China have done a deal, but it’s not the real deal
- This interim arrangement may temporarily help both sides alleviate the pain of the tariff war, but it provides no incentive for a more comprehensive deal
- The truth is the gap is getting ever wider – putting both peace and growth at risk
Hopes were high for a US-China detente following recent confirmations by both sides that a trade deal would soon be signed, and even the cancellation of the Asia-Pacific Economic Cooperation (Apec) leaders’ summit in Chile did not dampen the optimism.
Diplomats will no doubt clear up the minor setback and arrange another meeting to seal “phase one” of the trade deal, which negotiators are finalising after the 13th round of talks ended on October 11 in Washington.
Washington agreed to defer a set of tariff hikes it had planned for October 15, in exchange for a host of Chinese concessions. But these were the same terms as those agreed upon before the May tariff escalation, when Washington accused Beijing of reneging on promises and abruptly withdrew what US Treasury Secretary Steven Mnuchin had said then was a 90-per-cent done deal.