US-China trade war will most likely encounter no end. An analyst says so despite the approaching signing of the Phase One deal.
It was Panos Mourdoukoutas, a professor at Columbia University and the chair of the Department of Economics at LIU Post in New York, who made the statement. In his analysis on Forbes, he encapsulated the fundamental reasons why the US-China trade war will never end.
Accordingly, the trade war will never end since the current progression never intends to settle the chief issue. Even worse, the acting president and the administration seem to discuss this no further.
In sum, the main issue includes some like intellectual property and Chinese banks’ transparency to US banks. In short, this closely deals with the Chinese system and society itself.
However, Professor Mourdoukoutas is also skeptical that any US presidents will be able to reach a deal with the matter. This is so for settling the dispute that requires a massive and nearly total change to the system. It will, consequentially, cost myriad efforts and money.
US-China Upcoming Trade War Deal Does Not Equal an End
It is worth remembering that the approaching trade deal between Washington and Beijing does not equal an end. After all, it is just a partial trade deal.
The partial trade deal, or the Phase One deal, is the first installment of the supposedly bigger deal to settle the overgrowing dispute. That said, Phase One deal, so far, robustly focuses on agricultural deals.
Given the nature of the Phase One deal, agricultural matters never become the crux of the dispute although they affect the economy of both countries considerably. In other words, agricultural matters are the problems coming after the real issue escalated.
For that reason, if both countries have no intention to move to a more notable issue such as Chinese political and economic views, including technology and its security, trade war will see no end.
Moreover, many other analysts also foresee that ‘the end’ will not happen soon for China still has some doubts pertaining to the partial deal. Also, many analysts think that Trump administration only takes China’s worry for granted.