Unless President Donald Trump decides to blow things up, a “phase one” trade deal between the U.S. and China will finally be signed this week. But why is this deal, so heavily promoted by Trump, doing so little to undo the effects of the trade war? And what does that mean for the American economy?

As tensions rise between the U.S. and Iran, China is urging both countries to exercise restraint while it carefully avoids words or actions that could be construed as taking sides. Beijing’s measured response is a sign of its delicate balancing act in a region where it has considerable economic interests.