China's reticence contrasted with the parade of USA officials talking about the deal on Monday, including Treasury Secretary Steven Mnuchin and White House Economic Adviser Larry Kudlow. On top of that, as Hudson Institute senior fellow John Lee wrote for CNN, backing down on protectionism, IP theft and forced technology transfers could well force Xi to scale down his ambitions for Chinese economic development. The deal is, at best, really just an agreement to keep talking-a significant enough achievement after months of icy relations between the two major trading partners, but hardly an indication that the trade war is winding down.
However, Qualcomm Inc said on Monday it was not looking to revive its abandoned $44 billion acquisition of Dutch peer NXP Semiconductors NV.
"I will be very surprised - it could happen - I'll be very surprised if China reduces its tariffs on autos from all sources and all descriptions to zero percent", he said.
He later said China had committed to buying large amounts of United States agricultural products and completely removing all tariffs on USA automobiles, a huge shift from its current 40 per cent penalty.
"The window of doing bean business to China is getting really skinny, nearly to the point where it is closed", said Roy Huckabay, of Linn and Associates, a Chicago brokerage.
In his briefing with reporters, Kudlow said he assumed that the Chinese would eventually drop their auto tariffs altogether. These had been scheduled to increase to 25 percent on January 1 but were postponed as part of the weekend agreement.
"Apparently, the Chinese government doesn't want its people to consider the agreement as a failure for China", said Fang Kecheng, a Chinese media researcher at the University of Pennsylvania.
But Trump also expressed optimism for the 90-day negotiating period before tariffs are set to increase. "China trade truce because China has agreed to start buying agricultural products from American farmers immediately", said Monica Tu, an analyst at researcher Shanghai JC Intelligence Co.
China was already hit with $50 billion worth of tariffs earlier this year.
Mnuchin cast the weekend dinner as a breakthrough in the trade standoff with China and said there were "very, very specific" items that the two leaders agreed to have incorporated into a broader agreement that has yet to be finalized. White House economic advisor Larry Kudlow said the figure was a broad benchmark that would depend on private transactions for United States goods and was subject to market conditions.
U.S. President Donald Trump on Tuesday held out the possibility of an extension of the 90-day trade truce with China but warned he would revert to tariffs if the two sides could not resolve their differences. The Chinese market, he noted, is good for more expensive cars manufactured in Europe, but also smaller, more affordable ones produced in Japan and South Korea; it's the American-made cars like trucks and big SUVs that don't have quite the same appeal.