Us And China Trade Agreements

The pact aims to open up Chinese markets to more U.S. companies, increase agricultural and energy exports, and better protect U.S. technology and trade secrets. China has committed to purchase an additional $200 billion in U.S. goods and services by 2021, and is expected to ease some of its tariffs on U.S. products. In his March 22 announcement on Section 301 and China, President Trump said, “We have a huge ip theft situation, which is also in the hundreds of billions of dollars. And this on an annual basis. I spoke to the president. I have spoken to representatives of China. We have looked very seriously at that.¬†However, he mentioned other issues that were not related to intellectual property. He said the United States had a $504 billion trade deficit with China, or $375 billion, which he called “the largest deficit of a country in the history of our world.” He also said he had spoken with Chinese government officials, including President Xi, to “immediately reduce the trade deficit by $100 billion.” He also stressed that trade should be “reciprocal” and said that the United States was worth a 2% tariff on Chinese cars, while China was calculating a 25% tariff.

Finally, Mr. Trump noted that the two sides were “in the middle of a very large negotiation” on trade.206 China has strongly criticized the proposed U.S. actions under Section 301. On March 24, a spokesman for china`s Ministry of Commerce (MOFCOM) said the August 2019 Harvard/Harris Poll cape revealed that 67 percent of registered voters wanted the U.S. to face Beijing because of its trade policy, while 74 percent of respondents said U.S. consumers would bear most of the burden of tariffs. Mark Penn, co-director of Harvard CAPS/Harris Poll, said the poll shows strong U.S. public support for Trump`s trade policy against China, and said, “You realize that tariffs can have a negative impact on jobs and prices, but they think the fight is the right one.” [328] Soybeans are a good example of the anti-Trump reaction to trade policy. Before the trade war, they accounted for nearly 60% of U.S. agricultural exports to China.

China did not choose soybeans for random retaliation. Eight of the top 10 soybean-producing countries voted for Trump in 2016, including many major Swing States.8 On August 14, 2019, the Dow fell 800 points, in part because of growing trade tensions between the United States and China. [236] Nine days later, on August 23, the Dow fell 623 points on the day Trump informally ordered U.S. companies to immediately seek alternatives to do business in China. [237] [238] At the end of 2019, stock markets reached record levels after increasing due to the agreement between the United States and China on the signing of the first phase of a trade agreement. [239] [240] Beijing is also relaxing the licensing, inspection and registration rules that the United States has considered barriers to trade. The amendments cover products such as meat, poultry, pet food, seafood, feed, baby food, dairy products and biotechnology. In August 2018, Hong Kong-minded academic Willy Lam said the trade war had raised all previous concerns from various Western countries about China and undermined the authority of Chinese President Xi Jinping. [259] [260] Zhang Baohui, a professor of political science at Lingnan University in Hong Kong, also said that the trade war had been effective in challenging the myth of Chinese invincibility by saying that tariffs “really hurt China at a very bad time when the economy has serious problems.” [259] The United States and China have several unresolved issues regarding bilateral trade between the two countries.