May 21, 2018 09:45 PM
ECONOMY
Flare-Up Risks Remain Despite Breakthrough U.S.-China Trade Deal

Illustration: VCG
*Vice Premier Liu He and U.S. Treasury Secretary Steven Mnuchin both told the media that they had agreed to avoid a trade war, which analysts hailed a positive short-term development
*However, observers warned that tensions could return if measures to cut the trade imbalance are unsuccessful or if Washington wishes to extract further concessions
Trade tensions between China and the U.S. could become elevated again, despite the two governments’ significant deal to end tariff threats, as their dispute has deep roots and the bilateral imbalance is unlikely to narrow significantly by China simply increasing its imports from America, analysts said Monday.
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