There are increasing speculations that the completion of the phase one US-China trade deal would slide into next year. China is said to be refraining concrete commitment on farm purchases, while pushing for more extensive tariffs rollbacks. At the same time, tensions between the two countries increased due to unrest in Hong Kong.
US national security adviser Robert O’Brien said over the weekend “We were hoping to have [a phase one] deal done by the end of the year. I still think that’s possible”. Though, he also emphasized, “at the same time, we’re not going to turn a blind eye to what’s happening in Hong Kong or what’s happening in the South China Sea, or other areas of the world where we’re concerned about China’s activity.”
Meanwhile, Reuters reported that the “ambitious” phase two deal looks increasing less likely for now. An unnamed Chinese office was quoted saying that “It’s Trump who wants to sign these deals, not us. We can wait.” China might want to drag on with phase two negotiations to see if Trump could win a second term in next year’s election.
