Shanghai International Shipping Institute

MOODY's chief economist has dashed hopes that the US is gaining major ground in its negotiations with China aimed at preventing a trade war.

"I think it's a lose-lose. There are no winners here," Mark Zandi told CNBC. "This is face-saving because clearly they're not going come to terms on anything - at least, not in the near-term."

Mr Zandi was referring to Treasury Secretary Steven Mnuchin's announcement that a trade war was "on hold" as the world's two largest economies agreed to drop their tariff threats and discuss parameters for a wider trade agreement.

China consented to continue discussing measures under which it would purchase more US products to reduce the US$335 billion annual trade deficit between the two, but no specific dollar number was put forward.

Mr Zandi added that the discussions should have instead been focused on structural issues like intellectual property (IP) protection for investors, echoing the sentiment of many economists that the trade deficit figure should not be the focus of the US-China trade relationship.

"America wants the Chinese to buy $200 billion more of what America produces, but it's neither here nor there when it comes to protecting IP rights, which is really what we should be focused on here," he said. "I think it's a silly debate argument that is going to end up nowhere."

Other experts have warned that a deal with China focused on a dollar figure for trade is not a sustainable solution in the long term. Former US Under-Secretary of Commerce for International Trade Frank Lavin told CNBC on Monday that a narrow focus on the trade imbalance misses the more pertinent issues at hand.

"If they (China) give you a check, watch out. They're sort of buying you off and getting you just to go away for that money, so be careful of that," Mr Lavin said. "I'd say focus more on structural changes, getting market opening, fair treatment, level playing field, IP issues, investment protection."

US Trade Representative Robert Lighthizer made this point, saying in a statement: "Real structural change is necessary. Nothing less than the future of tens of millions of American jobs is at stake."