Trade tensions between the two economic powers have lasted more than a year, with both countries imposing tariffs on billions of dollars worth of each other’s goods. These moves have disrupted the global market, causing businesses to fall into instability and the economic outlook around the world becomes pessimistic.

Last month, the negotiations led to both sides agreeing to what US President Donald Trump described as a very important Phase 1 agreement, which would address U.S. concerns about access to financial services and intellectual property, and also including Chinese purchases of US agricultural products. China said it wanted the US to remove additional tariffs and reimburse taxes as part of the deal. But President Trump doubted the idea that Washington could agree to cut tariffs as part of the original deal, and even threatened additional tax increases on China.

The next tariff deadline is December 15. If the two parties cannot later sign the agreement, the additional US taxes on Chinese exports will take effect. The US Chamber of Commerce does not expect that an agreement can be signed at that time because it is only a few weeks away from it so it is difficult to get an agreement made on December 15.

On September 1, the United States imposed a 15% tax on $ 112 billion of Chinese imports covering a wide range of consumer goods, including certain types of clothing and footwear, and certain consumer electronics. Used as a camera and desktop. In general, reaching the first phase agreement will be an important starting point because it will place a truce trade agreement between the United States and China, and prevent further escalation. This agreement will also bring a little confidence and certainty in the current trading system. However, some of the more serious structural issues surrounding China’s subsidies and industrial policies will not be addressed in phase 1 agreements.