U.s.-China Phase I Trade Agreement

Oct 12th, 2021 | By | Category: Uncategorized

Derek Scissors, a China specialist at the American Enterprise Institute, said the trade war has already brought Trump an advantage, even though he hasn`t forced Beijing to make big changes to its economic policy: Trump`s tariffs have reduced Chinese exports to the U.S. and reduced America`s trade deficit with China. Washington (AP) — The United States and China reached a trade deal Wednesday that eases tensions between the world`s two largest economies, offers massive export opportunities for U.S. farms and factories, and promises to do more to protect U.S. trade secrets. The U.S. and China need to renegotiate important policies that are not affected by the Phase One agreement. Trump`s trade war has failed to address what was really shaking the U.S.-China trade relationship. It is time for a new approach. At the signing ceremony at the White House, U.S.

President Donald Trump called the agreement “an important step that has never been taken before with China towards a future of fair and reciprocal trade with China.” Chinese Vice President Liu He, meanwhile, sent a message from Chinese President Xi Jinping, who hailed the trade deal as a sign that the two countries could resolve their differences through dialogue. The dependence of the Phase One deal on massive purchase commitments from China could be its biggest mistake. These commitments often generate press releases about the big sales that are coming, but the deal has not done enough for what was really needed: lower tariffs and other trade barriers to allow producers to compete with the Chinese market. If trade liberalization had been at the centre of the agreement and not just the small part that was, the long-term results might have been better. Energy accounted for only 8% of the total goods covered by the first phase purchase obligations, but their objectives were particularly questionable. Bloomberg reported that it was only after the signing of the agreement that the government learned from U.S. industry that it did not have the capacity to produce to meet the targets.10 In addition, the assessment of the U.S.-China trade relationship based on a significant increase in fossil fuel exports – among the targets are only crude oil, liquefied natural gas, coal and refined products – ignores global concerns about climate change…

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