Clete Willems Discusses Latest Updates on the U.S.-China Trade Agreement on CNBC
In a recent CNBC television appearance, Clete Willems, a partner at Gump public law and policy, highlighted the China Phase One deal as a notable example of policy making in Washington aimed at improving ties with China. However, Willems also emphasised the need for investors to pay more attention to the broader range of U.S. policy on China.
The China Phase One deal, signed between Washington and Beijing in January, was the result of extended tensions between the two countries, during which they imposed punitive tariffs on each other's goods. The deal is significant in terms of Washington's efforts to open up markets and expand ties with China, according to Willems.
However, Willems also suggested that the deal is just one example of policy making in this regard, and that there may be other aspects of U.S. policy on China that are not focused on market opening and expansion. He also pointed out that the U.S. kept almost all of the tariffs in place as part of the deal.
Willems praised President Trump for getting China to make certain commitments that others have failed to do, but advised not to read too much into any one statement made by any advisor regarding the status of the trade deal. He also noted that any significant information about the trade deal would come directly from President Trump himself.
The trade deal remains a potential advantage for President Trump in the upcoming U.S. presidential election. Willems believes the deal will hold because China is doing a good job at implementation.
Moreover, Willems emphasised the need for a greater focus on "decoupling" between the world's two largest economies. He specifically mentioned Joe Biden as the politician connected with this decoupling of the world's largest economies. Willems suggested that investors may not be as concerned as they should be about the broader range of U.S. policy on China.
In summary, while the China Phase One deal is an important step in improving ties between the U.S. and China, investors and the public should also pay attention to the broader range of U.S. policy on China, as well as the potential for further decoupling between the two economies.
