U.S. – China Relations: Will De-escalation Last?

After nearly 18 months of negotiations, the U.S. and China announced an agreement on ‘phase one’ of an interim trade deal on December 13, 2019. In addition to trade, the fact sheet released by the United States Trade Representative (USTR) has chapters on intellectual property, technology transfer, agriculture, financial services, currency, and dispute resolution. Both countries agreed to halt additional tariff hikes that were scheduled for December 15. While the agreement avoids a near-term escalation of the U.S.-China trade dispute, the exact terms of the agreement due to be signed in January 2020 are shrouded in uncertainty.