After weeks of promising statements, it looks like we’re back to square one all over again, with recent reports suggesting that the “phase one” trade deal between the US and China could get delayed into next year. While China has been pressing for further rollbacks on tariffs, the US Senate has condemned the Hong Kong protests, adding to the tensions.

After the high level meet between trade teams in Washington in early October, Trump has announced the interim trade deal and stated that it would be signed by mid-November. However, since then, confusion has reigned in markets over mixed updates from both sides. While on the one hand, officials stated that talks were progressing well, on the other, we heard that China wanted more assurances from the US that it will rollback tariffs in a phased manner. This was promptly shot down by Trump, heightening tensions in the trade relationship.

The latest we hear on the issue is that Trump and US Trade Representative Robert Lighthizer are not keen on rolling back tariffs for a partial trade deal with limited scope that fails to address key concerns surrounding IP protection and forced technology transfer. China, meanwhile, is keen to sign the trade deal by early December before the next tariff hikes take effect on December 15.

Even as trade negotiations remain ongoing, the US Senate’s decision to pass a legislation regarding human rights of protesters in Hong Kong is sure to add more strain in the US-China trade talks. There is also high uncertainty driven by Trump’s volatile and unpredictable nature, which is keeping China on edge and hesitant to sign a trade deal just yet. With all these issues in focus, could we see a trade deal being signed between the US and China within this year?