The arrest of Huawei’s CFO and recent Trump tweets boasting that he is “Tariff Man” have sparked concerns about the durability of the US-China trade truce. But there are still some grounds for optimism. The Chinese government has now clarified its understanding of the agreement, which broadly aligns with US claims. And it seems willing to step up efforts to boost intellectual property enforcement and reduce barriers to foreign investment. With Trump’s reputation as a dealmaker on the line, this may be just enough to avert further tariffs, even if it is unlikely to resolve the broader tensions over technology and national security.
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