Phase 1 Agreement With Chinaadmin
Derek Scissors, a China expert at the American Enterprise Institute, said the trade war had already given Trump an advantage, even though he didn`t force Beijing to change its economic policy: Trump`s tariffs reduced Chinese exports to the United States and reduced America`s trade deficit with China. To date, the U.S. merchandise trade deficit over the previous year has decreased by 16% from the previous year to $321 billion. The deficit will continue to shrink if Beijing meets its commitments to buy significantly more U.S. imports. The U.S. agricultural belt, with its excessive influence in U.S. policy, has been China`s most whistleblower target for Trump`s tariffs. Agricultural exports grew relatively well before the trade war, but suffered.6 Unlike hard-hit U.S. producers, U.S. farmers received tens of billions of dollars in federal subsidies in 2018, 2019 and 2020. Agriculture accounts for only 22% of the products covered by the purchase obligations, less than a third of the size of the manufacturing industry.
Estimate based on the methodology described in this appendix. These products are defined by the USITC 2020 Covid-19 Related Goods: U.S. Imports and Tariffs, converting harmonized tariff codes into Schedule B codes. Source: Author`s calculations. Given that the Phase One agreement brought a ceasefire to the growing tensions between the United States and China, what would lead to its downfall? Although the narrow trade agreement reached earlier this year is only a small part of a much broader relationship between the world`s two largest economies, hopes for its implementation have contributed to some of what has become an open strategic confrontation. However, in the run-up to the U.S. election, evidence indicates that the agreement is not keeping Trump`s promise.1 The latest official data show that China is not up to expectations and is only reaching 53 percent of the expected purchase target by September 2020. Indeed, Chinese imports of U.S. goods are now weaker than before Trump`s trade war with a flash of U.S.
tariffs on Chinese goods in 2018. The 86-sided agreement facilitates criminal prosecution in China against those accused of stealing trade secrets. It contains provisions to prevent Chinese government officials from applying administrative and regulatory procedures to remove the trade secrets of foreign companies and to allow such information to end up in the hands of Chinese competitors.