The agreement includes Beijing’s pledge to purchase US$200 billion in American goods and services over the next two years in exchange for a lessening of some tariffs. (The Logic)
Talking point: The deal includes some language on technology, such as Chinese concessions on strengthening intellectual property provisions, protecting trade secrets and cracking down on forced technology transfers. However, China has made these kinds of commitments before and not followed through on them. In any event, larger issues remain: the U.S. is cracking down on a loophole that let its firms sell to Huawei from their overseas offices, and pressuring allies to ban Huawei from their 5G networks. U.S. Treasury Secretary Steve Mnuchin said today that there are both technology and cybersecurity issues that need to be resolved in the next phase. President Donald Trump has raised the possibility of delaying that second deal until after the November 2020 election.