'This Is Another Band-Aid,' Say Experts, Questioning Long-Term Viability And Efficacy Of US-China Trade Deal: 'China Always Had This Trump Card'

The Trump administration has unveiled a new trade deal framework with China, but experts remain doubtful about its long-term viability and warn that the U.S. may be giving up its strategic advantage in the agreement.

What Happened: The deal aims to de-escalate tensions between the two nations, with both sides agreeing to roll back actions taken since the initial deal was struck on May 12. However, the deal is still pending approval from President Donald Trump and Chinese President Xi Jinping, reported Politico.

Notably, the U.S. has agreed to further concessions, including easing restrictions on the export of certain sensitive products to China and resuming the issuance of student visas for Chinese nationals. In contrast, China has merely reiterated its earlier promise—made a month ago—to lift the blockade on critical mineral shipments.

Despite the progress, experts are cautious. Derek Scissors, a senior fellow at the American Enterprise Institute, said, "This is another band aid.” He warns that China could easily reinstate the blockade on rare earths, a move that could severely impact global supply chains.

Former deputy assistant U.S. Trade Representative Emily Kilcrease believes the deal sets a “very dangerous precedent” by potentially weakening U.S. export controls. 

Meanwhile, Marc Busch, a professor of international business diplomacy at Georgetown University, adds that China’s rhetoric remains unchanged, casting doubt on the sustainability of the trade truce. "China has always had this trump card, they know how to use it..,” cautioned Busch.

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Why It Matters: The recent deal follows the implementation of the Geneva trade consensus, which resulted in a 90-day pause on tariffs imposed on China. This agreement was reached after two days of high-level discussions in London.

Meanwhile, Treasury Secretary Scott Bessent has suggested that the Trump administration may consider extending the current 90-day tariff pause beyond July 9 for the U.S.’s top trading partners. This extension, however, is contingent on the partners’ “good faith” in ongoing trade negotiations.

These developments indicate a potential shift in the U.S.-China trade dynamic, with ongoing negotiations and agreements potentially shaping future trade relations.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.