The „Economic and Trade Agreement between the Government of the United States of America and the Government of the People`s Republic of China,“ commonly referred to as Phase One Agreement, entered into force on February 14, 2020. Under the agreement, China would implement structural reforms, open up its financial services, and strengthen intellectual property protection, among other things. China has also pledged to buy at least $200 billion more in U.S. goods and services in 2020 and 2021. In the short term, the United States and China will continue to exempt certain goods and services from the injurious tariffs and other trade practices of both countries on an ad hoc basis. While this continues, Washington should give diplomacy and negotiations another attempt. It is clear that measures such as voluntary bilateral export restrictions, orderly marketing agreements and similar measures restricting imports of certain products are prohibited by WTO rules. Mr. Biden has often criticized Mr. Trump`s 18-month trade war with China is unpredictable and counterproductive. But more than eight months into his presidency, Biden has announced few measures that differentiate his approach, except for warmer appeals to U.S. allies.
In addition to tariffs on Chinese goods, the president has maintained restrictions on Chinese companies` access to U.S. technology and expanded the list of Chinese officials sanctioned by the U.S. for their role in weakening Hong Kong`s democratic institutions. One trade group predicted that demand for semiconductor devices would fall 12% as a direct result of the trade war. [248] The trade war indirectly led to the bankruptcy of some companies. One of them, Taiwanese LCD panel manufacturer Chunghwa Picture Tubes (CPT), went bankrupt due to an oversupply of panels and a subsequent price drop supported by vulnerability to the trade war (caused by excessive expansion in China), a slowdown in the Taiwanese and global economy, and a slowdown in the electronics sector. [253] [256] In April 2018, China announced that it would abolish laws requiring global automakers and shipbuilders to cooperate through state partners. [197] Chinese President and General Secretary Xi Jinping reiterated these commitments[198] and reaffirmed the desire to increase imports, lower foreign ownership limits for manufacturing, and extend intellectual property protection, all central issues in Trump`s complaints about their trade imbalance. [199] Trump thanked Xi for his „kind words on tariffs and auto barriers“ and „education“ on intellectual property and technology transfer.
„We will make great progress together!“ the president added. [199] The China-U.S. trade war (Chinese: 中美贸易战; pinyin: Zhōngměi Màoyìzhàn) is an ongoing economic conflict between China and the United States. President Donald Trump began imposing tariffs and other trade barriers against China in 2018 in a bid to force it to make changes to what the U.S. calls „unfair trade practices“ and intellectual property theft. [1] The Trump administration has stated that these practices could contribute to the U.S.-China trade deficit and that the Chinese government is demanding the transfer of U.S. technology to China. [2] In response to US trade measures, the Chinese government has accused the Trump administration of protectionism.
[3] On January 15, 2020, the two sides agreed on a phase one agreement, but tensions continued. Global economic growth has slowed amid a trade war. [214] The International Monetary Fund`s Global Economic Outlook, released in April 2019, lowered the global economic growth forecast for 2019 from 3.6% for 2018 to 3.3%, saying that economic and trade tensions could further slow global economic growth and further weaken investment. [215] According to Capital Economics, China`s economic growth has slowed due to the trade war, although the Chinese economy as a whole has „held up well“ and China`s share of global exports has increased. [216] [best source needed] U.S. economic growth has also slowed. [214] James Andrew Lewis of the Center for Strategic and International Studies said what the U.S. needs from China is a commitment to abide by international trade rules and standards and extend mutual treatment to the United States. Companies in China.
[316] In her announcement, Tai said she would „soon discuss with China its performance under the Phase One agreement.“ .