The Trump administration has touted the U.S.-China trade agreement to be a great step that will see advancements on the trade front and will also give immense boost to U.S. However, trade analysts feel that the trade agreement has very little potential, when it comes to dealing with pressing issues.
According to reports from ABC News, the U.S.-China trade will give America's trade a great boost and also close the trade gap with the second largest economy of the world. The deal will notably enable the export of liquefied natural gas to China by U.S. companies. Moreover, it will also reduce the barriers that have so far been hindering diverse matters related to agriculture and also the operation of American financial firms in China.
Wilbur Ross, the Commerce Secretary has touted the deal, which came through after President Donald Trump and President Xi Jinping met in April, as "a herculean accomplishment." He further added that this is also a first in the history of U.S.-China trade relations.
However, trade experts are doubtful about the magnitude of the U.S.-China trade agreement, New York Times reported. They feel that the moves are modest but it might not be sufficient to have an effect on the U.S. economy. And, the beef exports as well as, electronic payments have been promises that China made long time ago.
Moreover, the trade agreement does not address issues related to trade friction like social media and automobiles. Also, the challenge related to selling manufactured goods in China still remains as there is no mention of a more open market in China for U.S. manufactured products.
It is worth mentioning here that the Trump administration made the trade deficit of U.S and China as a major issue during his campaigns and at the time when he had just assumed office. So, it remains to be seen how this U.S.-China trade agreement helps him to lower the imbalances as he had promised.