Diminishes optimism for a deal with China

Continues unwavering in the trade standoff

, and ASMedia

2025 June 6 . 10:51 PM

2 min read

Trade Dispute Tension Pours Cold Water on China Deal Hopes

Diminishes optimism for a deal with China

Recent developments in the US-China trade dispute expose growing tensions against a backdrop of diminished hopes for a swift resolution.

Recent Fights and Accusations

Broken Tariff Truce: China alleges that the US violated the tariff truce tentatively agreed upon on May 12, 2025. While a 90-day pause in escalating tariffs was optimistically anticipated to foster dialogue, China argues that the US undermined this pause with new export control measures like restricting AI chip exports.[2]
Visa Revocation: The Trump administration's decision to potentially revoke visas for Chinese students in the US intensifies the conflict. This move is linked to broader strategies exerting pressure upon China in relation to trade matters.[2]
Unresolved Core Issues: Although the May 12 deal reduced US tariffs on Chinese goods from 145% to 30% and trimmed Chinese tariffs on US goods from 125% to 10%, underlying problems like intellectual property theft and technology transfer compel the simmering tensions.[1][2]

Sour Optimism for a Deal

President Trump's Approach: Trump's handling of the trade war has been met with criticism, as some argue that tariffs and unilateral actions could weaken the US's position in such negotiations. The widespread doubt regarding a quick resolution persists following a potential phone conversation between Trump and Xi Jinping.[1]
Leadership Communication: Xi Jinping has a tendency to entrust negotiations to ministers or ambassadors, which may inhibit pointed, detailed discussions between the leaders themselves. This approach casts doubt on speedy and comprehensive agreement resolution.[1]

In light of these statements and situations, the ongoing friction, absence of direct talks between leaders, and underlying disputes paint a grim picture for a breakthrough in the trade dispute in the immediate future.

References:

[1] ntv.de, lar/dpa (undated)[2] Enrichment Data (undated)

The ongoing US-China trade dispute, characterized by recent violations of the tariff truce, visa revocations, and unresolved core issues such as intellectual property theft, is causing concern within the employment policy of technology companies, as the war-and-conflicts and politics surrounding the General News could potentially impact their operations and foreign workforce.
As the trade dispute between the US and China persists with growing tensions, community policy makers are actively monitoring the situation, as the uncertain future resolution could significantly affect employment policies within industries relying on trade with both nations, thereby influencing general news reports on the economy and employment sector.