right now on the fundimentals the issue is the travel ban to China.
China is really mad that the US has a full travel ban and other countries may try to copy it.
the issue is that it could cause REAL economic damage which will kill their stock market which they are spending $$$$ to defend.
at some point there could be mutterings about some kind of retaliation which could roll back the phase 1 deal - or put a complete stop to getting to phase 2