Agreement China Us

Wednesday`s partial ceasefire could restore some confidence and Chinese purchases will help some sectors of the U.S. economy, but the pact preserves the bulk of tariffs on $360 billion worth of goods from China. Administration officials have said they will not lift these rights until countries can agree to a phase 2 agreement. Longer tensions in relations could prompt U.S. companies to spend less in China and vice versa. But Mr. Trump has already set a deadline for a new deal after the November election, and there is deep skepticism that the two countries will reach another agreement in the near future. Assessing progress in achieving the Phase 1 targets for merchandise trade requires information from both U.S. export and import statistics, as Chapter 6 of the agreement, Article 6.2.6, states that « official Chinese trade data and official U.S.

trade data are used to determine whether this chapter has been implemented. » One consequence is that there are two sets of monthly data to follow (Chinese imports and U.S. exports). A second is that there are two different annual targets, and therefore monthly, given that the basic level of Chinese imports in 2017 deviates from the initial level of U.S. exports for 2017. Finally, the products covered by the purchase commitments are listed in the appendix of the Schedule 6.1 agreement at levels of 4, 6, 8 or 10 digits; These will then be ranked in U.S. or Chinese trade statistics for 2017 and 2020. As of our October 26, 2020 report, we have included the U.S. export product 8800 (in addition to 8802 aircraft) in « secure manufacturing » and total, and we have relocated it out of the « uncovered » category. Trump`s agreement is intended to facilitate the identification and punishment of theft and counterfeiting of intellectual property.

For example, several provisions relating to the protection of confidential information are added, considered trade secrets and which, according to AMERICAN companies, are not well protected by Chinese law. These safeguards also include « electronic intrusions, » a reference to hacking computer systems. While U.S. businesses and farmers welcome these commitments, China only agrees to make purchases for the next two years, and what happens next is vague. The agreement stipulates that countries « progthea » that the increase in purchases would continue until 2025. The shopping list also leaves some questions unanswered: what will happen to China`s contracts with other countries for products such as soybeans? Will purchases distort commodity markets? Data Sharing Notice: This update is based on data of 25 November 2020 published on 25 November 2020 for Chinese and US exports – provisional data on US exports to China, which are monitored under the agreement, are now published before the full release scheduled for 7 December 2020. The next update will be based on data from November 2020, which will be published on December 25, 2020 (Chinese imports) and December 23, 2020 (U.S. exports).