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- US-China ‘phase one’ deal is ‘hollow’ and ‘ridiculous’ - Yale University professor
US-China ‘phase one’ deal is ‘hollow’ and ‘ridiculous’ - Yale University professor
The U.S.-China “phase one” trade deal is “hollow,” “flawed” and “ridiculous,” a Yale University professor told CNBC.
Stephen Roach, senior lecturer at Yale University’s Jackson Institute, said the preliminary trade agreement was a “pretty hollow deal.”
“It’s politically expedient, especially for the U.S. President who’s feeling a lot of political pressures for other reasons at home,” said Roach. “But it’s very flawed in that it focuses on a bilateral fix, operating on the U.S.-China bilateral deficit to address America’s multilateral trade imbalances with 102 countries.”
Investors around the world have been eagerly awaiting the signing of the phase one trade deal between the world’s two largest economies, with markets experiencing volatility over the past month on the back of news related to the deal. The preliminary agreement, which is intended to pave the way to a more comprehensive deal, was hailed as a “very substantial phase one deal” by U.S. President Donald Trump in October.
According to Roach, however, the deal would be more of a political win than an effective move toward tackling the underlying problems that sparked the trade conflict.
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