Finally, some good news. China and the United States seem to have stepped back from the brink with a trade war truce.
A deal reached last week could boost markets, cool Pacific tensions and perhaps offer a respite to the wobbling global economy — if it actually happens. Trump and Chinese President Xi Jinping have not yet signed it, and no draft has been released.
While Chinese state media was rather circumspect about the whole thing, Trump announced the deal in a tweet that seemed ripped from a 1970s Radio Moscow script: “The deal I just made with China is, by far, the greatest and biggest deal ever made for our Great Patriot Farmers in the history of our Country,” he wrote. He claims China has already started tens of billions of dollars in purchases of US agricultural produce.
But wait to read the fine print before popping open the baijiu. The President has hardly lived up to “Art of the Deal” self-mythologizing, and tends to over-sell such agreements.
So far, there’s no indication that the deal includes sweeping changes to China’s economy and cuts to state industry subsidies that the US once demanded. And while Trump says Xi was desperate for a deal, he is the one facing reelection next year.
There’s reason to suspect that Trump — not Xi — blinked first. But at least, for now, things are not getting worse.
CNN’s Sherisse Pham breaks down what the deal does and doesn’t do here.
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