President Trump has signalled that he is open to the possibility of a new trade deal with China, though probably not before tensions rachet up further. This would likely involve China committing to more purchases of US goods, particularly energy, agricultural goods and (if the US allowed it) semiconductors and chipmaking equipment. While a deal might help to minimize the short-run hit to China’s economy from US tariffs, we doubt it would be durable or fundamentally alter the direction of US-China relations.
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