Nobel Prize winners and recognized economists have called for a China-U.S. trade deal after two of the world's largest economies revealed that they are getting close to sealing "phase one" of the much-anticipated trade agreement.
According to Bloomberg, 37 economists released a statement on Sunday, encouraging China and the United States to set their differences aside and come up with solutions to resolve trade issues.
Among the economists who expressed support for a China-U.S. trade deal are Michael Spence, Joseph Stiglitz, and three other Nobel Prize awardees. They said a bilateral and sensible framework will help improve trade relations between the two sides.
The economists added that wholesale economic models will allow for suitable reforms that will help both countries find fewer reasons to engage in a trade war. "We believe this approach preserves the bulk of the gains from trade between the two economies," they said.
Harvard economist Dani Rodrik, who has been pushing for more "policy space" for countries to have a stronger authority in protecting their economy, is among the signatories in the economists' joint statement.
Rodrik argued in a previous interview that Trump's initiative of a trade war is not the best approach in asking China or other countries to deal with U.S. complaints about trade and other dealings.
For Rodrik, expecting countries to bend to American "rules" and demands is "an unrealistic expectation," especially with an economy as massive as that of China.
In line with the developments in the "phase one" trade deal with the White House, analysts praised the Chinese government's efforts in improving the way it attracts foreign investors to have a feel of its massive market.
Chinese Premier Li Keqiang confirmed in a recent meeting with Western company executives that China welcomes global firms to explore potential business in the country.
Li's statements came after Beijing first reiterated last week that it will continue to open up its markets to overseas manufacturers and companies. Li added that his country will treat foreign brands with equality.
The opening-up initiative is part of Beijing's efforts to pursue economic reforms for the development of its economy. The initiative is also linked to "Made in China 2025," the industrial revolution that is expected to see China's further rise through global cooperation.
Following last week's meeting between Chinese and American delegations, Beijing and Washington confirmed that "some sections" of the phase one deal are "close to being finalized."
The Chinese government said it has come to an agreement with the U.S. regarding American imports of meat products. Beijing's statement has been recognized by analysts as a way of showing the country's willingness to end the 15-month-long trade war.
