Phase 1 Trade Agreement Us China
December 14, 2020
As of September 2020, China had purchased only 53% of what was expected at this time of year (Chart 1, Panel a).3 Imports of all covered products were only $65.9 billion compared to a target of $124.9 billion. Up to three-quarters of 2020, China had bought only more than a third of what it had promised in the Trump deal it would buy this year. (The full-year purchase target is $173.1 billion.) Chinese imports from the United States failed to catch up with their pre-trade level and were 16% lower than the same date in 2017. He added that both sides “see progress and commit to taking the necessary steps to ensure the success of the agreement.” In his January 2020 trade deal with China, President Donald Trump 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.” In a statement from Washington, it was said that the parties had “taken the steps that China has taken to bring about the structural changes required by the agreement.” In its statement, Beijing said a “constructive dialogue” between the two sides had “agreed to create the conditions and atmosphere to continue the implementation of Phase 1 of the China-U.S. Economic and Trade Agreement.” Despite a recent Report by the Trump administration, which suggests another thing, U.S. agricultural exports to China have yet to meet commitments made in the first phase.7 Although better than manufacturing, it was not until September that agricultural exports returned to their pre-market level (Figure 3). In September, they were only 66% of their seasonally adjusted targets. In other words, China will have to import 62% of the total agricultural commitment in October, November and December if it is to meet the 2020 target. 2.
On July 6, 2018, the Trump administration imposed its first tariffs on $34 billion worth of Chinese goods. China returned the favour at the same time. The two countries have imposed tariffs until September 2019, together covering more than $450 billion in bilateral trade. The January 2020 agreement applies to U.S. exports of goods and services. Because detailed data on high-frequency trade for services are not available, these commitments are not assessed here.