The U.S. and China have finally declared a truce in their two-year trade war. The countries yesterday signed what they dubbed the first phrase of a broader trade pact. The U.S. offered to ease some punitive tariffs. China agreed to go on a $200 billion American buying spree and do more to crack down on Chinese theft of U.S. companies’ trade secrets.

Great news, right? Not so fast, argues Penelope Prime, an economist at Georgia State University. She highlights three fundamental issues the deal fails to resolve – all of which make getting a more comprehensive accord difficult.

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President Donald Trump shakes hands with Chinese Vice Premier Liu He after signing the trade agreement. AP Photo/Evan Vucci

US-China trade pact President Trump just signed fails to resolve 3 fundamental issues

Penelope B. Prime, Georgia State University

The deal represents a trade war truce but doesn't resolve the underlying tensions that led to the two-year-old conflict.

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