According to a Reuters report, China has back tracked on nearly all aspects of their commitment in trade negotiation with the US. In each of the seven chapters of the 150-page draft trade deal, China deleted its comments regarding law changes that addresses US complaints. It’s seen by the US as undermining the “core architecture” of the trade deal. A private sector source said “China got greedy” and “on a dozen things, if not more.” And, China appears to be miscalculating with the US administration even after 20 years dealing with them.
Chinese Vice Premier Liu He will arrive in Washington of Thursday to save the trade agreement. At the same time, new round of tariffs will take effect at 0001 Friday, if no deal is agreed. There’s speculation that Liu could agree to scrap the latest proposed text changes and agree to making new laws. But at this point, it’s unsure what level of authority and constraints Liu has got from President Xi Jinping Thus, no one knows what results Liu could achieve.
