China trade agreement is crucial to avoiding the next Cold War
By U.S. Senator David Perdue
President John F. Kennedy once said, “let us never negotiate out of fear. But let us never fear to negotiate.”
Kennedy’s words live on today as we fight to level the playing field with our trading partners around the world. The Trump Administration has negotiated trade deals with South Korea and Japan, in addition to the USMCA with our closest neighbors.
Earlier this month, the administration kept up the momentum by coming to a preliminary agreement with China on what President Donald Trump called “phase 1” of a potential deal.
This agreement would be a win for America. It calls for potentially doubling U.S. annual agricultural exports to China, and addresses some Chinese foreign-exchange issues. It also halted some scheduled tariff increases, making it a win for China too.
While modest, this agreement would be an important first step if it is signed by President Trump and Chinese President Xi Jinping.
It is critical that these trade talks continue and that more impactful steps are taken. If not, there is risk of the U.S. and China developing a relationship reminiscent of the Cold War.
To understand the current moment, it is important to look at the historical perspective.