www.privateairny.com Private Air | Spring 2020
47
FINANCE
By: Nicole Cohen
C
hina and the U.S.
finally signed "Phase
1" of a trade deal.
Given Phase 1 took
almost two years, the countries
are likely in for the long hall
because "Phase 2" is certain to
be more complicated. Variously
referred to as a "phase one,"
"mini," "skinny," "partial" or
"interim" deal, the agreement
tackles important issues, but lacks
a framework for lasting peace.
at might have to come in
Phase 2 if at all.
e United States Trade
Representative announced in
December the deal will address
longstanding concerns relating
to intellectual property, unfair
technology transfer practices,
barriers to trade in goods, barriers
to trade in financial services
and banking, transparency
commitments related to currency,
and a mechanism for the timely
resolution of disputes.
What the agreement forestalls
until later are many of the
thornier structural issues at the
heart of the U.S.-China trade
dispute. One outstanding issue
is China's massive subsidies. e
Chinese government supports
the corporate sector in a way that
leads to overcapacity in certain
areas like steel and aluminum
and provides Chinese companies
an unfair competitive advantage
in the global markets.
U.S.-CHINA
TRADE PACT
YIELDS
LINGERING
UNCERTAINTY
FOR EMERGING
TECHNOLOGY
DOMINANCE
