But Mr Trump has already passed the deadline for a new deal after the November election and there is deep skepticism about the prospect of the two countries reaching a new deal in the near future. The agreement marks an important turning point in U.S. trade policy and the types of free trade agreements that the U.S. has generally supported. Instead of reducing tariffs to allow the flow of goods and services to meet market demand, this agreement leaves a record level of tariffs and forces China to buy some products worth $US 200 billion in two years. “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. China has also agreed not to force U.S. companies to hand over their technology as a condition of doing business in that country, or face additional tariffs. And it will refrain from ordering its companies to obtain sensitive foreign technologies through acquisitions. The agreement also includes a commitment by both countries not to devalue their currencies in order to gain an advantage in export markets. The deal ends more than two years of tense negotiations and threats of escalation that sometimes seemed destined to plunge the United States and China into permanent economic warfare. M.
Trump, who ran for president in 2016 promising to crack down China, urged his negotiators to rewrite trade terms he said had destroyed American industry and jobs, and he imposed record tariffs on Chinese goods in a game of chance to get Beijing to meet its demands. 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. Wendy Cutler, vice president at the Asia Society Policy Institute, which negotiated trade pacts for the Obama administration, called the benefits “meaningful, but modest.” Chinese leader Xi Jinping said in a message to Trump that the deal was “beneficial to China, the United States and the world.” Xi also said the agreement shows that the two countries can find adequate and effective solutions to problems “on the basis of equality and mutual respect, through dialogue and consultation.” For all uncovered products, which accounted for 29 percent of China`s total merchandise imports from the U.S. and 27 percent of total U.S. exports to China in 2017, the first agreement has no legal goal. In October 2020, China`s imports of all uncovered products from the United States were $28.4 billion, down 25% from the same period in 2017. U.S.
exports of all uncovered products to China were US$22.0 billion as of September, 13% less than during the same period in 2017 (October data for non-covered products will be available on December 7, 2020.) “They said they intend to implement the plan and we are busy with them,” White House economic adviser Larry Kudlow said Thursday. “We have big differences with China on other issues, but we are committed to the Phase 1 trade deal.” Trump, who said the trade deal no longer matters as much to him due to China`s handling of the coronavirus pandemic, this week expressed support for the deal and said it is expected to continue and purchases are expected to increase in 2021. . .