Looking beyond preferences scheme

The summit meeting between President Donald Trump and President Xi Jinping was overshadowed by rising tensions in the Middle East, yet trade issues remained high on the agenda. While the talks produced no major breakthrough on the closure of the Strait of Hormuz or broader geopolitical concerns, there was modest progress on easing bilateral trade tensions. China agreed to increase purchases of American agricultural products by more than $17 billion annually and confirmed the first tranche of an order for 200 Boeing aircraft. The two sides also agreed to establish separate trade and investment boards to manage economic relations more systematically. On tariffs, however, the meeting largely preserved the status quo, with China refraining from pressing for immediate reductions and both sides choosing, for now, to avoid further escalation. These developments are unlikely to restore the pre-c...