US-China Phase One deal inching towards brink of collapse

Increasing signs that what began as a trade war has now morphed into a full-blown tech and political war

Published Fri, May 15, 2020 · 09:50 PM

Beijing

AS US-China tensions continue to rise, the Phase One trade deal signed earlier this year between the world's two largest economies may not outlive the Covid-19 pandemic.

Although it's in the interest of both countries to keep the relationship on track as a total breakdown could increase the current economic slowdown, Washington and Beijing are locked in a war of words that could imperil the deal that that took months to negotiate.

There are increasing signs in both camps that pursuing their commitments would not be worthwhile as the trade war - based on trade imbalances - has now …