US-China Trade War Truce: When Core Conflicts Are Not Resolved

VTV.vn - The US and China are close to a trade agreement to ease tensions, but core conflicts over security and trade balance remain unresolved.

US President Donald Trump (left) and Chinese President Xi Jinping. Photo: Kyodo/ VNA

Chinese and US trade negotiators have prepared a series of “ diplomatic victories” for President Donald Trump and President Xi Jinping to announce at a summit this week. These initial results have reassured investors, but the deep-rooted conflicts between the world’s two leading economic powers have not been resolved.

Speaking to reporters on October 27, Mr. Trump said he “feels very optimistic” about the possibility of reaching a deal with China, after officials from both countries announced a series of steps to cool bilateral trade tensions over the weekend in Malaysia. Accordingly, China is expected to resume soybean purchases from key US agricultural states, while the US may withdraw its latest plan to impose 100% tariffs in exchange for ensuring the supply of rare earth magnets from China.

The news has helped boost global financial markets, with the MSCI World Index closing in on an all-time high. However, analysts warn that the deal, which the two leaders are expected to sign in South Korea, still avoids thorny issues, such as conflicts of interest over national security or the Trump administration’s trade rebalancing goals. Notably, Chinese investment in the US remains tightly restricted, adding to the impediment to the process.

Mr. Sun Chenghao, a scholar at Tsinghua University (China), noted that in the coming years, the two economies will likely only reach small agreements in each field through prolonged dialogue.

On the US side, US Treasury Secretary Scott Bessent has recently urged China to rebalance its economy and encourage stronger domestic consumption. However, China seems to ignore that call when it released a new policy document emphasizing the key role of manufacturing and technological autonomy in economic growth until at least 2030.

The outlines of the US-China deal were revealed as Mr Trump began a week-long tour of Asia, during which he signed trade agreements with Thailand and Malaysia on rare earths and an anti-dumping agreement with Cambodia.

Source: https://vtv.vn/dinh-chien-thuong-mai-my-trung-khi-nhung-mau-thuan-cot-loi-chua-duoc-giai-quyet-100251028150331958.htm