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U.s. China Trade Agreement

By Dr. Danica Krunic In Allgemein

As a candidate in 2016, Donald Trump built his case for the presidency around his alleged insight as a dealmaker. As the 2020 election approaches, President Trump and his deputies are doubling down on that claim, including by pressing attention on what he called „the biggest deal he`s ever seen“: the „phase one“ trade deal with China. The deal calls for a Chinese obligation to buy an additional $200 billion of U.S. goods by the end of 2021 above 2017 levels. „I think this may be a useful pause in the downward spiral of U.S.-China relations,“ Susan Shirk, a professor at the University of California, San Diego, said of the trade deal. The agreement also contains commitments, at least on paper, to halt the forced transfer of US technology to Chinese competitors. Companies have long complained that they have had to give up valuable technologies and trade secrets to do business in China. China has pledged not to require such transfers, even if companies apply for certain administrative licenses or authorizations. Some critics say there is little substance, but the signing is an opportunity for US President Donald Trump to emerge from the trade war and claim a gain for the 2020 presidential election. President Donald Trump has claimed the success of his trade war with China with his January 2020 Phase One trade deal. In its self-proclaimed „historic“ deal, China pledged to buy $200 billion in additional goods and services from U.S.

industry in 2020 and 2021. Trump even boasted that the deal „could be closer to $300 billion once done.“ For U.S. merchandise exports, the agreement covers products that accounted for $95.1 billion in 2017, or 73 percent of total U.S. exports to China ($129.8 billion). Of the total exports of the products covered in 2017, $20.9 billion in exports came from agriculture, $66.5 billion from production and $7.6 billion from energy. The products uncovered by the agreement — and therefore have no targets for 2020 — accounted for 27 percent ($34.7 billion) of all U.S. exports to China in 2017. One conclusion of the data is obvious. Americans suffered when China`s retaliation devastated U.S. exports. Trump`s tariff hike has raised prices for U.S.

consumers and costs for U.S. businesses. Its politically motivated purchase commitments may have created more problems than they have been solved. After the election, the US will need a new approach to solving its trade problems with China. Economist Sheng Hong, director of the no longer-existing Unirule Institute of Economics think tank, said it would be good for China to give in to US demand for fair trade, arguing that the „Chinese model“ of state capitalism is incompatible with its policy of market reforms and harms the Chinese economy. [258] In the midst of the closure of Unirule, after Hong was accused of threatening state security, Hong compared Hong Beijing`s inability to tolerate internal criticism to „driving in a car with a dirty windshield.“ [258] Hun Quach, vice president of international trade at the Retail Industry Leaders Association, claimed that tariffs will influence U.S. family budgets by raising the price of everyday goods. [286] [298] [299] Trump`s agreement aims to facilitate the identification and punishment of intellectual property theft and counterfeiting. For example, it adds several provisions to protect confidential information that is considered trade secrets, which U.S. companies say are not well protected by Chinese law. These safeguards also include „electronic intrusions,“ a reference to hacking into computer systems. The GOC challenged the forced transfer of ip as a mandatory practice and recognised the effects of domestic research and development in China.

[61] Former United States. . . .