The United States and China must resume negotiations on important policies that are not affected by the first phase agreement. Trump`s trade war has failed to address what really concerns U.S.-China trade relations. It is time for a new approach. The agreement is subject to any violation of monetary commitments in relation to the mechanism for implementing the agreement, which would allow them to obtain U.S. tariffs. 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. Under the agreement, China has committed to purchase as much as $63.9 billion of U.S. covered goods by the end of 2020 compared to those basic plans for 2017. The definition of the baseline for 2017 based on Chinese import statistics implies a purchase target of $173.1 billion for 2020 (in red in panel a).
The definition of the baseline for 2017 based on U.S. export statistics implies a target of $159.0 billion by 2020 (blue in panel a). 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). Provisional U.S. export data for October were zero for aircraft (harmonized customs plan 8800 and 8802); All revisions to the data will be included in a review that was published on December 7. Chinese customs reported that imports of Chinese aircraft (8802) were only $506 million in October. At the same time, China imported more pork to cope with local shortages caused by the epidemic, resulting in U.S. pork exports exceeding their 2020 target (see Chart 3).
In September, Chinese pork imports from the rest of the world also increased by more than 400% compared to 2017. And in one of the few parts of the first phase agreement, which includes political commitments (Chapter 3), China has agreed to remove technical barriers that had slowed pork imports. 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.