Comments by the Chinese foreign ministry
- China, US in thorough talks on “Phase One” deal
- Level of tariff cuts should reflect significance of the first deal
I reckon you can sort of get the sense that both sides are still yet to land on some firm common ground with regards to this deal.
Markets aren’t reading much into the comments here but the remark on the degree of tariffs cancellation reflecting the importance of the “Phase One” deal reads badly in my mind.
China wants the US to commit to removing more tariffs over time and the US won’t budge on that because they risk giving up too much leverage.
Meanwhile, the US wants China to firmly detail their commitments on agricultural purchases and more structural issues but China isn’t willing to do so either.