The prospect of signing “phase two” of the U.S.-China trade agreement is still elusive for the time being, amid efforts of the parties to conclude an agreement (Phase One), according to a committee of many trade experts and legislators.
As reports indicated that the difficulties signing the first phase of the trade agreement, in addition to the pressure that Washington is putting on Beijing by refraining from working with other countries is dashing hopes about more optimistic steps in the near future.
In a report last Wednesday, Reuters noted the possibility that the signing of the first phase between the two sides would be delayed until next year, as the two countries face a conflict over Beijing's demand for large-scale tariff cuts.
Officials in Chinese do not want to move forward with the second phase of the trade agreement until they know the outcome of the upcoming US presidential election; in other words, whether Trump will have a second term or not.
Securing the first stage of the trade agreement with China, as well as China's purchase of large quantities of U.S. agricultural goods, was trump's priority, with a strong point in his upcoming election campaign, according to a Trump administration official.
A second official said that once the first stage of the trade agreement has been completed, they will begin negotiating the second stage, he also stressed that "as far as when the phase II deal can be finalized, this is not something I can predict."
Meanwhile, both sides have a clear interest in completing the first phase of the deal relatively soon to calm markets and allay domestic policy concerns.
The trade war has casted a shadow over the global economy, which has become a burden on all the world's economies.
On Monday, the
People's Bank of China set the exchange rate of the yuan against the US dollar
at 7.0397, while it was set during Friday's trading session at 7.0306.