US-China ‘phase one’ trade agreement is 95% theatrics, Richard Wolff tells Boom Bust

As the world’s economic superpowers, the US and China, have finally inked the first part of a broader trade agreement, analysts and industry leaders are raising doubts if the sides will move into ‘phase two’ anytime soon.

RT’s Boom Bust is joined by Richard Wolff of the Economic Update to talk about the aspects of the long-awaited deal.

“I don’t see much happening. This is 95 percent theatrics, partly for the Trump administration because they initiated all of this, but also partly for the Chinese also.”

Wolff explains that China wants “to look as though they are cooperating and are not interested in being a problem.” According to him, Beijing has “successfully promoted” such position around the world where this is “entirely seen as an American initiative, an American commitment to protectionism, not at all blaming China.”

The economist adds that “in the long run it is a very important gain for China which it has taken over from the United States - the position of being a reasonable global economic power that isn’t slapping anybody with tariffs, at least not as an initial behavior.”

It’s only doing it if it is subjected to tariffs, Wolff says.

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