Trump said Wednesday`s agreement was a “phase one” agreement and promised that the government would address other issues, such as China`s government subsidies, in future negotiations. The deal was attacked by Democratic leaders, including Senator Chuck Schumer of New York, who criticized the deal for failing to address Chinese state-owned enterprises and industrial subsidies. He suggested that President Xi was laughing privately from the United States and that China had “brought President Trump to the cleaning staff.” Despite all the fanfare – and the unusual attitude of a president when signing a bilateral trade agreement – it is more of a ceasefire than a victory – only a small part of the tariffs are cancelled and relatively small concessions are granted by both sides. Tariffs remain on about two-thirds of goods purchased by Chinese Americans. On December 4, 2018, the Dow Jones Industrial Average had its worst day in nearly a month, falling nearly 600 points, which some are suggesting, in part because of the trade war. [234] On December 26, the Dow Jones rose 1,000 points after the release, according to Reuters, of a report documenting strong holiday sales, although major indexes fell by more than 10% in December 2018, in the midst of the trade war. [235] The deal signed Wednesday has some victories for Mr. Trump: China has pledged to buy an additional $200 billion in U.S. goods and services by 2021 and to aggressively address trade practices that the Trump administration has criticized.

But the text of the agreement does not provide enough information to determine how it will work in practice and it is not certain that China will interpret it differently from the United States. This agreement represents an important turning point in U.S. trade policy and in the types of free trade agreements that the United States has generally supported. Instead of reducing tariffs to allow trade in goods and services to meet market demand, the agreement leaves a record level of tariffs and forces China to buy some $200 billion worth of goods in two years. “We hope that both sides will respect the agreement and seriously respect it.” However, in the run-up to the U.S. election, evidence indicates that the agreement is not keeping Trump`s promise.1 The latest official data show that China is not up to expectations and is only reaching 53 percent of the expected purchase target by September 2020. Indeed, Chinese imports of U.S. goods are now weaker than before Trump`s trade war with a flash of U.S. tariffs on Chinese goods in 2018.

President Trump`s long-awaited trade deal with China involves significant changes in economic relations between the world`s largest economies. Other Republican senators have made more mixed statements. Mitch McConnell said “no one wins a trade war,” but there is hope that the tactic “puts us in a better position vis-à-vis China.” John Cornyn said: “If that`s what it takes to get a good deal, I think people are going to be hanged from it, but at some point you`ll have to solve it. If it lasts a long time, everyone realizes he`s playing with a live grenade. [281] Joni Ernst said in May 2019 that “tariffs hurt farmers” but that they “want us to find a way forward with China” and said, “We hope to reach an agreement quickly.” [282] Economist Sheng Hong, director of the dissolved think tank Unirule Institute of Economics, said it would be good for China to yield to America`s demand for fair trade, arguing that the “Chinese model” of state capitalism was incompatible with its policy of market reform and damage to the Chinese economy. [258] In the midst of the closure of Unirule, after Hong was accused of threatening state security, Hong Beijing`s inability to contain internal criticism was compared to “driving in a car with a dirty windshield”. [258] If you simply rely on acha goals