'No deal' North Korea is a reminder that a China trade deal won't be easy
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A U.S. government spokesperson said there is still “need for stronger protection and enforcement of intellectual property rights” in China, despite Beijing having improved laws over the last couple of years. Trump and Xi are supposed to meet at some point in March, with promises of some sort of signing ceremony. For trade negotiations to be successful, however, “China must demonstrate real structural changes that yield actual, verifiable, and enforceable results.” That’s Washington’s line.
China and North Korea are two different things. One impacts the market, the other is more of a geopolitical chess game. North Korea has not moved on testing new nuclear rockets, so the political risk for the peninsula, where important South Korea sits, is lower than it was a year ago. From Washington’s point of view, the existing SOEs are still subsidizing industries, leading to oversupply of certain industrial items, like photovoltaic cells for solar panels and steel. Washington is also worried that it cannot compete with the Chinese on an even playing field if government-controlled companies are funding various high-tech companies through its Made in 2025 initiative.a cautious tone about the months-long euphoria about the dying trade war.
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