Derek Scissors, a China expert at the American Enterprise Institute, said the trade war had already given Trump an advantage, even though he didn`t force Beijing to change its economic policy: Trump`s tariffs reduced Chinese exports to the United States and reduced America`s trade deficit with China. In the economic and trade agreement, China promises to buy certain quantities of U.S. goods and services. Over the next two years, these order inflows will amount to $200 billion in U.S. exports above their current level. Read the nearly 100-day trade deal between U.S. House of Representatives spokeswoman Nancy Pelosi, D-Calif., in a statement that “with the loss of thousands of manufacturing and Farm Country jobs, plagued by President Trump`s damage, Americans have no choice but a striking televised ceremony to try to hide the total lack of concrete progress. Transparency or accountability in this Phase 1 agreement. “We mark more than just an agreement.
We are marking a change in international trade,” Trump said at a noise ceremony, referring to former FBI Director James Comey, impeachment proceedings and a possible july 4 visit to Mount Rushmore for a fireworks display. “We need to make sure that this is properly implemented,” Lighthizer said. “This is the first agreement of its kind, and we need to make sure it works.” Trump campaigned for the signing of trade as a way to provide economic justice to American workers, whom he claims have been betrayed by previous governments and their trade policies. The government acknowledges that the agreement has not resolved some U.S. complaints, particularly the way the Chinese government subsidizes its businesses. That was the concern expressed when Trump sparked a trade war in July 2018 by imposing tariffs on Chinese imports. Nevertheless, the Phase 1 agreement did not resolve Washington`s fundamental differences with Beijing, which depends on massive state intervention in the economy to turn China into a technological powerhouse. The 86-sided agreement facilitates criminal prosecution in China against those accused of stealing trade secrets. It contains provisions to prevent Chinese government officials from applying administrative and regulatory procedures to remove the trade secrets of foreign companies and to allow such information to end up in the hands of Chinese competitors. The deal leaves tariffs on about $360 billion in Chinese imports, with the government`s leverage hoping to generate concessions in the future.
“The Phase 1 agreement contains reasonable commitments, but does not meet the government`s original objectives,” said Wendy Cutler, a former U.S. negotiator who is now vice president of the Asia Society Policy Institute. Other Chinese concessions would force Bejing to make major changes to its state-dominated business model, meaning that “the prospects for a timely conclusion are very remote,” she said.