China promised a $200 billion increase in purchases of US goods and services over two years. China’s trade surplus with the US is indeed too large. Much of China’s foreign currency has been spent on purchasing US treasury bonds. This is not an ideal trade-financial structure in the long run. Moving toward a trade balance is a healthier direction for China-US economic cooperation.
While enormous attention has been focused on how much China promises to buy under the phase one deal, another major part of the US-China agreement – financial services – may have far more implications for both markets in terms of the amount of capital involved.
The beginning of a new decade has a happy ring to it – a feeling of turning a page, of starting anew, of a fresh impetus. Yet, this year of the rat according to the Chinese calendar looks ominous, one in which the world will face many daunting challenges.
By Jorge Heine
US stocks traded on an upbeat note on Wednesday as Wall Street is keeping a close eye on the long-awaited phase-one trade deal with China.
The renminbi-denominated deposit balance of Taiwan’s financial institutions increased to 261.03 billion yuan (about 37.9 billion U.S. dollars) at the end of December, according to the island’s monetary authority.
Technological cooperation is merely a tiny portion of the phase one trade deal between the world’s top two economies, according to the agreement text.
The phase one trade agreement between China and the US reflected what Chinese officials have long stressed – that any deal must be balanced and fair and include initiatives that, if properly executed, could help address disputes and avoid further confrontation, Chinese analysts said on Thursday.
By Wang Cong and Ma Jingjing
China will need time to assess the just-signed phase one trade agreement and other complicating factors before launching negotiations with the US for a phase two agreement. US officials, including Vice President Mike Pence, who claim the talks are already underway may be getting ahead of themselves, a government advisor said on Thursday.
By Ma Jingjing and Wang Cong
China and the US eventually signed the phase one trade agreement. The hard-fought agreement should be cherished by both sides.
US Senator Marco Rubio made absurd comments on China again, condemning “blatant human rights violations” in China on Tuesday after the government of Southwest China’s Tibet Autonomous Region legislated to guarantee ethnic unity.
By Yu Jincui