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‘Largely a victory for Beijing’: Trump blinked in China trade war, experts say

12/14/2019 11:12 am ET
‘Largely a victory for Beijing’: Trump blinked in China trade war, experts say 1

Credit: ABC News

The Trump administration blinked in the long trade standoff with China that damaged U.S. farmers and caused a rise in farm bankruptcies.

“Economists and trade experts call it largely a victory for Beijing,” as the AFP reported Saturday morning.

“This is kind of an incredible shrinking deal,” said Rhodium Group founding partner Daniel Rosen on CNBC’s “Squawk Box.” He said that phase one of the truce was “so far away,” from what Trump promised, “I can’t even see it on the horizon.”

According to Trump, China will spend $50 billion a year on U.S. agricultural products like soybeans and pork. But China has yet to confirm whether or not this is true.

While Trump is touting $50 billion, that number is a smokescreen for many demands that were cast aside by the Chinese in order to achieve this deal. “Pardon me if I don’t pop champagne, but aside from a cessation of continued escalation, there is not much worth cheering,” leading China expert Scott Kennedy told AFP. “The costs have been substantial and far-reaching, the benefits narrow and ephemeral.”

Meanwhile, farmers are struggling to make ends meet, thanks to the trade wars. The U.S. government has spent $28 billion in direct aid to farmers. China has made trade partnerships with other countries who sell their agricultural products for much cheaper, like Brazil.

Alliance for American Manufacturing President Scott Paul said the trade war truce was “giving away much of our leverage while kicking the can down the road on the most meaningful trade issues with China.”

Previously, Trump bragged in a tweet, “Trade wars are good, and easy to win.”

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