U.S. President Donald Trump has called the phase one trade deal with China "very substantial" — but analysts say it appears to be more of a "temporary truce" than a real deal. They say it doesn't sufficiently touch on the thorny issues plaguing both sides, and warn that negotiations could break down again before the phase one agreement is drafted. The trade dispute between the U.S. and China has gone on for more than a year and after their 13th round of talks last week, Trump said Friday that both sides have reached a phase one deal, and it will be written over the next three weeks. The U.S. also agreed to suspend a tariff increase on at least $250 billion in Chinese goods to 30% from 25%, which would have taken place on Tuesday. Plans for another hike set to kick in on Dec. 15 remain in place. "We think the 'substantial' first-stage trade deal made by Trump with China looks more like a truce than a genuine deal," said Christiaan Tuntono, senior economist for Asia Pacific at Allianz Global Investors. Economists at Macquarie Capital echoed the same view and called it a "temporary truce."

So the 'substantial' is for the low hanging fruits — it's a bit lower than the low hanging fruits actually. And we haven't seen anything of real material yet. Vishnu Varathan head of economics and strategy, Mizuho Bank

Mizuho Bank's Head of Economics and Strategy Vishnu Varathan told CNBC on Monday: "In terms of the real thorny issues, none of that is thrashed out." "So the 'substantial' is for the low hanging fruits — it's a bit lower than the low hanging fruits actually. And we haven't seen anything of real material yet," he added.

As part of this partial deal, China will purchase between $40 billion and $50 billion worth of U.S. agricultural products. It will also address intellectual property and financial services concerns, Trump said. However, Varathan pointed out, China "wants more agricultural goods ... anyway." "It doesn't look like a huge stretch on either side, and I think China's harder stance, and hunkering down on its position hasn't really changed either," he continued.

'Sensitive areas' in trade war not addressed

The trade fight between the world's top two economies has spilled into other areas such as technology and even a so-called currency war. Both sides have not been able to resolve some of the thornier issues in their trade talks, such as intellectual property theft and technology transfer. This partial agreement also doesn't address "many other more sensitive areas" such as cyber security, as well as Chinese tech giant Huawei and the future of the blacklisted Chinese companies, said Allianz's Tuntono.

While this first-stage deal is called a deal, it does not remove the existing tariff burden on US-China trade or reduce the uncertainty faced by businesses in future US-China relationship. Christiaan Tuntono senior economist for Asia Pacific at Allianz Global Investors