WHAT WILL BEGINNED NOW?
Mr. Trump and Mr. Xi will need to actively participate in determining the conditions of a final agreement in order for trade negotiations to expand. In the event that both parties work toward a thorough trade agreement, Mr. Trump has suggested that he might contact him rapidly by phone.
Questions arise as to whether China is willing to cooperate with American companies, as Mr. Trump claimed, and whether the US is ready to do the same.
There are a number of ways China can take to lessen its business imbalances, which are a major cause of tension between the two nations.
Second, Beijing is prepared to substantially improve American agricultural products and power purchases in an effort to reduce the trade deficit. Second, it has the authority to impose restrictions on exports to the US, a trend that is now roiling as exporters extend into other markets. Third, Beijing may improve its holdings of US Treasury securities, with China holding the second-largest amount, worth US$ 784 billion, behind Japan. Third, Beijing may encourage more Foreign businesses to make investments in the US.
However, some more concerns remain. What agreements is the US make to China in exchange?
Does the US relax restrictions on high-tech goods, including electronics? May Chinese firms get welcomed at a time when actually Chinese-produced garlic is viewed as a threat to national security, even if they want to invest in the US?
Finding solutions to these queries won’t remain simple.
Past South China Morning Post Editor-in-Chief Wang Xiangwei He is currently a journalist at Hong Kong Baptist University.