It has been observed that the tug of war between US and China in economic trade became more serious particularly at the time of outbreak of ruthless and fatal covid-19 virus. Days before the coronavirus shuttered Wuhan and changed the world, the Trump administration and China signed what both sides said would be only a temporary truce in their 18-month trade war.
Since then, the pandemic has jumbled global priorities, international commerce has stalled and surged, and President Biden has taken office. But the truce endures — and now appears to be setting new, lasting ground rules for global trade. A new agreement is not likely to be made this year.
Moreover, the current one leaves many hot button issues untouched: It does nothing to prevent huge Chinese subsidies. It also left in place most of Trump’s new tariffs on Chinese goods.
As far as the stance and opinion of Beijing is concerned that he won’t budge on the issue of subsidies, said people familiar with its positions.
The model appears to be growing more popular. The E.U. is drafting legislation allowing it to broadly penalize imports and investments from subsidized industries overseas.