Trump talks up trade deals with China, but experts see no big wins for U.S.

The recent summit between President Trump and Chinese President Xi Jinping has sparked hope for easing economic tensions between the two countries in the short term. However, experts are skeptical about any breakthrough trade deals resulting from the meeting. Wendy Cutler, a former negotiator in the Office of the U.S. Trade Representative, expressed disappointment in the lack of significant announcements from China regarding purchases of U.S. agriculture, energy, and airplanes.

President Trump, on the other hand, hailed the summit as a success, claiming that “fantastic trade deals” had been made. Chinese officials also acknowledged the potential for new areas of cooperation with the U.S. However, David Meale from Eurasia Group cautioned that both sides need to provide more details before the agreements can be considered finalized.

One clear winner from the talks is Boeing, with China agreeing to purchase at least 200 aircraft from the U.S. aviation giant. While Boeing sees this as a positive outcome, analysts were expecting a larger aircraft order, leading to a slight dip in Boeing’s shares.

In addition to aircraft, China has also committed to buying more U.S. oil and agricultural products, including billions of dollars worth of soybeans. The White House highlighted these agreements as significant wins for American farmers and manufacturers. However, specifics on the deals remain vague, prompting skepticism from energy and trade experts.

The verbal commitments made during the summit are non-binding, leaving room for uncertainty about their implementation. Past agreements between the U.S. and China have faltered amidst escalating tensions, underscoring the need for concrete details and follow-through.

Despite the lack of immediate results, the talks have laid a foundation for stability in the economic relationship between the two countries. The establishment of a “Board of Trade” and “Board of Investment” signifies a new framework for managing trade disputes and potentially lifting tariffs on certain goods.

While the summit may not have produced the expected blockbuster deals, it sets the stage for ongoing discussions and potential progress in the future. The world’s two largest economies have taken a step towards resolving their differences, with the hope of fostering a more stable and constructive economic relationship moving forward.