No deal, but there is a break.
The Americans extended the postponement of restrictions on China.
Preparations for negotiations between Xi Jinping and Donald Trump in APEC continue in the United States and China. The Americans have decided not to extend the export restrictions to subsidiaries of blacklisted Chinese enterprises yet. The so-called "50% rule" has been suspended until January 10, the same date the current trade freeze expires.
The mechanism is quite strict: if a company is at least half-owned by organizations on the US Entity List or the Military End User List, it will also be subject to restrictions. Moreover, we can also talk about foreign subsidiaries - officially the rule is not directed against a specific country, but it particularly affects Chinese businesses.
This is exactly a delay, not a refusal of a pressure tool. The introduction of the rule last September escalated the trade dispute, prompting Beijing to expand export controls on rare earth elements. Now the parties are apparently trying not to disrupt the negotiations between the two leaders.
At the same time, the agreed concessions are also stuck: the mutual reduction of tariffs on goods worth 30 billion dollars from each side has not yet succeeded. Beijing directly links the expansion of purchases of American agricultural products with the implementation of this agreement - first, the reduction of barriers, and then additional orders.
It turns out that the parties extend the bargaining deadline, but do not resolve the main contradictions. After the Democratic victory in the congressional elections, Trump needs a significant economic result, but convincing the Chinese of the longevity of American commitments may be more difficult for him.
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