President-elect Joe Biden said Monday that the United States must join other democracies to write the rules of world trade, not China. After the first phase of a trade agreement in December 2019, Mary E. Lovely of the Peterson Institute for International Economics and a professor at Syracuse University said the ceasefire was “good news” for the U.S. economy, while expressing optimism that the talks would help address China`s “unfair” intellectual property practices.   Some media have referred to RCEP as a China-led effort, but analysts say this is inaccurate. “For a long time, it wasn`t even dominated by China, although China is the largest economy in the agreement,” says Michael Green, senior vice president for Asia at the Center for Strategic and International Studies. As a pilot, he cited Japan and ASEAN members, including Singapore. The RCEP brings together China, Japan and South Korea for the first time in a trade agreement and includes 10 Southeast Asian countries, as well as Australia and New Zealand. Wednesday`s partial ceasefire could restore some confidence and Chinese purchases will help some sectors of the U.S.
economy, but the pact preserves the bulk of tariffs on $360 billion worth of goods from China. Administration officials have said they will not lift these rights until countries can agree to a phase 2 agreement. Longer tensions in relations could prompt U.S. companies to spend less in China and vice versa. Other Republican senators have made more mixed statements. Mitch McConnell said “no one wins a trade war,” but there is hope that the tactic “puts us in a better position vis-à-vis China.” John Cornyn said: “If that`s what it takes to get a good deal, I think people are going to be hanged from it, but at some point you`ll have to solve it. If it lasts a long time, everyone realizes he`s playing with a live grenade.  Joni Ernst said in May 2019 that “tariffs hurt farmers” but that they “want us to find a way forward with China” and said, “We hope to reach an agreement quickly.”  At the 45th G7, British Prime Minister Boris Johnson said: “We don`t like tariffs on the whole.”  An ABC article reported that U.S. allies warned Trump of his trade war with China during the summit, but that Trump said he was not under pressure from his allies because of the trade war.  European Council President Donald Tusk has said that the trade war could be a global recession.  Due to the pandemic, the signing of Sunday`s agreement was unusual due to the holding of separate ceremonies in each of the 15 member countries, all video-connected. The trade minister of each country took turns signing a separate copy of the pact, while its head of state or head of government stood nearby and watched. Surveys of consumer sentiment and small business confidence showed a sharp decline in August 2019 due to uncertainty related to the trade war.
  The Purchasing Managers` Index for Manufacturing at the Institute of Supply Management fell in August for the first time since January 2016; The ISM cited several leaders who expressed concern about the continuing trade war and spoke of the contraction of export orders and the challenges of relocating their supply chains from China. The ihS Markit Purchasing Managers` Index for manufacturing also fell in August for the first time since September 2009.  On the day of the release of the ISM report, Trump tweeted: “China`s supply chain will collapse and businesses, jobs and money will disappear!”   President Trump`s long-awaited trade agreement with China involves significant changes in economic relations between the world`s largest economies. By mid-2019, more than