US-China ‘Board of Trade’ could assist ties however specialists flag market worries | USAEMALL.com

WHY HAS THIS SPARKED WORRY?

“Instead of taking regulations out, tariffs down, and making it easier for customers and companies to decide what they sell at what prices, it (would be) more mechanised,” said Joerg Wuttke, a partner at advisory firm DGA-Albright Stonebridge Group.

“That’s not a good sign,” he told AFP. “Where are the market forces?”

Such an approach is also not good for competitiveness, and could fuel concern among other trading partners, Wuttke warned.

A US-based business leader, speaking on condition of anonymity, said that managing trade raises concerns over how Washington will decide which industries to prioritize, and which sectors will benefit.

DOES IT HELP THE RELATIONSHIP?

Bown of PIIE believes a managed trade agreement between the United States and China could be more successful than previous attempts to solve economic conflicts.

The question is whether this leads to “a more sustainable, longer-term relationship” that is better than a “constant back and forth of conflict”, he said.

“It’s clear the old system didn’t work. Could we try a new system that might work?”

But any trade agreement would have to be realistic and acceptable to both parties.

“You’d have to have a sincere commitment by both sides to make this work,” he added. “Even then, it’s going to be really, really hard.”