Analysis: "Was the 19-Month Trade War Worth This?"

China and the United States have agreed on the first part of a new trade agreement. In the first phase, the United States will stop the implementation of Sunday's announced tariff tariffs on consumer goods in particular, such as mobile phones and computers. China, for its part, should have promised to carry out large purchases of US agricultural products. Details of exact volumes or sums have not been revealed, and according to media sources, it is precisely China's refusal to commit to detailed commitments on US imports that have led to negotiations being delayed on time.

China's Deputy Minister of Agriculture, Han Jun, says China will buy more pork from the United States. Anyway, China needs something to meet domestic demand after last year's severe swine flu outbreak.

China has also promised to review how to handle so-called technology transfer from foreign companies operating in China. One of the main points in the US claims has been the infringement of intellectual property rights. China has long been regarded as stealing or forcing foreign technology, for example through compulsory cooperation of foreign companies with Chinese parties. However, since 2014, President Xi Jinping has prioritized patent courts that are said to work really well. Also, China no longer has the same need to copy foreign technology; on the contrary, they now have their own technology development to protect. In any case, from this point of view Chinese people have also not specified what measures they intend to take.

The trade war has lasted for almost two years and has shaken the global economy sharply. Phase 1, which the two parties call this first agreement, does not touch on any of the really difficult disputes, such as China's large steel and manufacturing industry has come to dominate the global market thanks to support from the Chinese state. A competitive advantage that does not comply with international market rules. The deal also does not describe how to proceed in the "technology war" that arose around the telecom company Huawei.

Their 5G technology is blocked in the US because it is considered a security risk. Apart from disagreement on the pure trade issues, the agreement of other contradictions between the countries is also made more difficult. The United States has criticized China's treatment of Uighurs in Xinjiang Province and expressed concern about the situation in Hong Kong. This is regarded by the Chinese as an unauthorized interference with the country's internal affairs and makes cooperation and agreements difficult in a number of areas. Yesterday's agreement should thus be seen as a first tiring step towards a stable trade settlement in continued mined terrain.