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Right here's why suspending the U.S.-China commerce deal overview can't be a foul factor

Postponing the U.S.-China trade deal review may not be a bad thing, an analyst said Monday.

The two sides should be practically meeting on Saturday, but talks have been delayed due to planning conflicts and the need to give the Chinese time to buy American exports, Reuters reported, citing unnamed sources. No new date has been set.

"I think it's in the interests of both parties to have a little more time," said David Dollar, senior fellow at the Brookings Institution.

"China seems to be increasing its soybean and energy purchases. So if you look objectively now, it's not very good. Give it a little more time, it will probably look a little better," Dollar told CNBC. Road signs Asia. "

After all, President Donald Trump does not want to "tear the deal down" at this point. "It is not in his interest to have a verification that things are not going well as he wants this to look like a foreign policy victory," Dollar said.

US Trade Representative Robert Lighthizer, US Treasury Secretary Steven Mnuchin and Chinese Deputy Prime Minister Liu He were supposed to meet.

China has so far failed to meet its promised purchases in the first deal. In this agreement, China undertook to purchase additional US goods worth $ 200 billion over the next two years in addition to the 2017 US export figures.

However, in the first half of 2020, China purchased less than 25% of its target total US products for the full year, based on both statistics, data from the think tank showed. The data excludes China's purchase of US services, PIIE said.

Two other problems could complicate the review of the trade agreement.

"Usually the Communist Party leadership meets on the beach at this time," Dollar said, referring to the secret meeting in the coastal city of Beidaihe on China's northeast coast every summer.

Chinese negotiator Liu likely had to attend high-level meetings at the time, Dollar said.

Another issue that likely made the proposed trade review more difficult is that the Chinese wanted to discuss the recent actions the Trump administration has taken in the US against Chinese tech firms – but those are outside the purview of the USTR, resulting in one leads to certain disjunction, said Dollar.

Last week, Trump issued executive orders banning US transactions with Chinese tech firms Tencent and ByteDance.

"I think sales rep Robert Lighthizer is just trying to do a very professional job and is keeping the discussion he's involved in right in his wheelhouse – these are general imports and exports, not national security issues," Dollar said.

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