While other presidents have tried to change China`s economic approach, Mr. Trump has pledged to do so. The agreement calls for “China to ensure” that its purchases reach $200 billion by 2021, guaranteeing an export boom as Mr. Trump enters the 2020 election. In 2017, even before the start of the trade war, China bought $130 billion worth of U.S. goods and $56 billion in services, as U.S. data show. 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. “I think it may be a useful pause in the downward spiral of U.S.-China relations,” Susan Shirk, a professor at the University of California, said of the trade deal. 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. Donald Trump has signed the first phase of a new trade deal with China after two years of tensions between the two superpowers that have shaken economies around the world. In a meeting with U.S. Secretary of State Mike Pompeo in Hawaii on June 17, Chinese Foreign Minister Yang Jiechi reiterated Beijing`s displeasure with new U.S. “interference” in Hong Kong, Taiwan, Xinjiang and other affairs. A Chinese official said That Yang had suggested that “the U.S. side should not go too far if we get involved,” and that if “red lines” are crossed, it could totally jeopardize the first phase trade agreement.
Energy accounted for only 8% of the total assets covered by the first phase`s purchase obligations, but its objectives were particularly questionable. Bloomberg reported that it was only after the signing of the agreement that the government learned from U.S. industry that it did not lack production capacity to meet the targets.10 In addition, the assessment of U.S.-China trade relations on the basis of a significant expansion of fossil fuel exports – whose targets include only crude oil , liquid natural gas, coal and refined products – ignores global concerns about climate change. But the agreement has a lot of criticism in both sides who say that sir.