Is it time to celebrate a China-U.S. trade deal?

With only four days to go for a trade deal to be clinched before a March 1 deadline, U.S. President Donald Trump confirmed on Twitter that he would extend the deadline to add extra tariffs on Chinese goods, as a result of the very productive talks between the two sides over the weekend.

The latest round of China-U.S. trade negotiations in Washington, which was supposed to last for two days, saw a surprising but not unexpected turn when it was extended for another two days. Instead of Memorandum of Understandings, the two sides are now pushing for finalizing the details of a much-anticipated trade deal.

So is it now the time to raise a glass, or is it still too early to celebrate?

Three months is too pressing for the two sides to reach a final deal. But media reports suggest that structural issues may have been settled and they are now exchanging the text of the deal, Wang Yong, a professor at the School of International Studies and director of the Center for International Political Economy at Peking University, told CGTN.

“Substantial progress” was made on U.S. concerns including technology transfer, protection of intellectual property rights, non-tariff barriers, service industry, agriculture and exchange rates, wrote Xinhua quoting the Chinese delegation.

U.S. President Donald Trump talks with Chinese Vice Premier Liu He (L) in the Oval Office of the White House in Washington, D.C., the U.S., February 22, 2019. /VCG Photo

“This suggests that China is making more compromises than the United States for the possible deal,” Wang said, but added that “it does not mean that China has lost in this trade war.” The whole process, according to Wang, can be regarded as China's “second accession to the WTO and the direction where Sino-U.S. talks are taking conforms to Beijing's efforts in market reform.”

As the trade fight enters its seventh month, the international community has expressed increasing concern that the friction has moved beyond trade and a into the territory of a possible full-fledged Cold War. In this context, the deal, if clinched, would be a multi-win result, stabilizing the regional and global economy.

In this sense, China's gesture will re-stabilize the China-U.S. relationship and prevent trade spats from exerting domino effects on politics, diplomacy and geopolitics. Given the above, Wang believed a “strategic competition” is unlikely between Beijing and Washington.

Trump is working towards a fundamental deal too. From his announcement to extend the deadline, to his promise not to block more advanced 5G technology, which is widely believed to be referring to China's telecommunications giant Huawei, it seems that this time Trump is serious in inking a comprehensive deal with China.

Chinese Vice Premier Liu He (R) talks with U.S. Trade Representative Robert Lighthizer at the Diaoyutai State Guesthouse in Beijing, China, February 15, 2019. /VCG Photo.

As far as Wang is concerned, Trump's softened rhetoric can also be seen as part of Washington's compromises to take a fairer attitude in trade and drop the weapon of political tools against China's telecommunications companies such as ZTE and Huawei.

Also noteworthy in the Xinhua report, as Wang pointed out, is the progress on the exchange rate. Democrats have long accused China of currency manipulation. While the exchange rate issue was not brought up at the early stage of China-U.S. talks, it was discussed over the weekend.

“This may imply that the U.S. trade delegations have consulted the Democratic Party for the talks,” Wang said. He believed that consensus on the exchange rate will partly satisfy appeals from Democrats.

“In spite of party politics, Russiagate scandal and domestic political and economic quagmires, the discussions on the exchange rate will make the possible deal more likely to be ratified by the U.S. Congress, Wang said.

The two presidents have played a pivotal role in the trade talks. The the Beijing-Washington relationship is of vital importance in not only trade, but also security, global governance and other regional hotspot issues. The deal, if inked, will definitely exert positive effects on the world's most important bilateral relationship.

The devil is indeed in the details. After a year-long process of tough negotiations, it seemed that breakthroughs have finally being made and both sides are on the same page for healthier bilateral relations. If it is not time to celebrate, as least this deserves genuine applause.

(CGTN)