China Trade Agreement With Us

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. Since the 1980s, President Trump has often advocated tariffs to reduce the U.S. trade deficit and encourage domestic production by saying the country was being “ripped off” by its trading partners, and the imposition of tariffs has been an important part of his presidential campaign. [22] [23] [24] [25] [26] He stated in early 2011 that it was almost impossible for our companies to compete with Chinese companies because China was manipulating their currency. [27] At the time, Alan Tonelson of the U.S.

Business and Industry Council said China`s undervaluation rate was at least 40%, and said tariffs were the only way to fix it: “Nothing else has worked, nothing else will work.” [27] President Donald Trump, in his January 2020 trade deal with China, argued that his trade war with China was a success. In its self-proclaimed “historic” agreement, China committed to purchase other U.S. goods and services in 2020 and 2021. Trump even boasted that the deal “could be closer to $300 billion once it`s done.” Despite the escalation of the conflict, the Phase 1 trade agreement is not being dismantled, U.S. officials say. In July 2018, academic Xu Zhangrun said the trade war exposed the underlying weaknesses of China`s political system and criticized Chinese President Xi Jinping for his “excessive pride” and “vanity policy.” [259] [260] If the objectives are not met, U.S. tariffs will be reluctant. But China is making some progress in another part of the first phase agreement: the adoption of certain intellectual property laws. But there should be a phase two agreement that addresses really important issues, such as cyber-theft and Beijing subsidies to Chinese companies. U.S.

sales of cars, trucks and parts also fell to just 33 percent of the previous target. Before the trade war, China was the second largest export market for U.S. vehicles. In July 2018, China returned the favor against Trump`s tariffs with a 25% tariff on U.S. cars. U.S. exports then fell by more than a third due to the relocation of production for Chinese consumers to other sites and the non-recovery of U.S. exports since then. Tesla, for example, announced in late 2018 that it would accelerate construction of a new plant in Shanghai and relocate U.S. production to Chinese consumers. The company stressed that Trump`s tariffs on auto parts and China`s retaliatory measures against finished cars had not made U.S. exports to China competitive.

In response to this trade war policy, BMW has relocated part of its production from South Carolina to China.5 The china-U.S. trade war (Chinese: 贸易战; Pinyin: Zhéngmi Méoyzhén) is a persistent economic conflict between China and the United States.