After reviewing the most recent provisions of the China Trade Agreement, what is the likelihood of compliance? In your opinion, will our relationship with China, improve, stay the same or worsen over time? Please explain

According to model simulations, both nations would indeed be better off under this 'controlled trade' deal than they would have been had the tariff war intensified. However, compared to the power structure, China and the rest of the world are worse off due to trade deflection. China can recoup such costs by expanding its marketplace to all trade agreements rather than allowing the U.S. preferential access. The evidence indicates that U.S. imports are mainly bearing the duties, that U.S. merchants have faced declining profitability, and that exporters reliant on foreign supplies have been harmed. As a result of these economic expenses, Republican candidate popularity has dwindled in the most adversely affected states (Yen, 2021). Expanding U.S. sales to the still-protected China market favors the U.S. significantly, with total revenue increasing by 0.9 percent and trade balance increasing by 6% in 2021. However, these advantages come at the price of almost every other country. China lost 0.4 percent of its revenues in 2022 due to unproductive tariff barriers away from more productive sources, despite strong increased trade (Johnson, 2020). The global impact is also unfavorable, with revenue falling by 0.17 percent and commerce falling by around 0.9 percent in 2021.

            East Asia pacific (without China) will have the most significant decline in income and exports, followed closely by Latin America. Mexico benefits indirectly from enhanced U.S. exposure to China's market due to robust source ties with America. Coordinated trade benefits both countries. The influence on the United States is enormous, with revenue increasing by 1.6% and trade balance increasing by 7% in 2020. Chinese revenue is less affected, but it is still favorable (Yen, 2021). The global impact is adverse, with revenue falling by 0.5 percent and exportations falling by 0.65 percent in 2021. East Asia is predicted to experience the most significant decline in earnings and imports (-0.45 percent and -0.7 percent, respectfully, in 2021), followed by Central America.