Trade Agreement Between The Us And China
In August 2019, Trump`s trade adviser Peter Navarro claimed that tariffs do not harm Americans. Politifact considered Navarro`s claim to be “Pants on Fire.”  “He uses [the trade war] as a political weapon,” Kane said. One conclusion of the data is obvious. Americans suffered when China`s retaliation devastated U.S. exports. Trump`s tariff hike has raised prices for U.S. consumers and costs for U.S. businesses. Its politically motivated purchase commitments may have created more problems than they have been solved. After the election, the US will need a new approach to solving its trade problems with China.
The domestic declaration of trade war is censored in China. While news agencies are allowed to cover the conflict, their coverage is subject to restrictions; The South China Morning Post said Chinese media workers had been ordered not to “over-report” the trade war, while an article in the New York Times said government news agencies had tried to promote the official line, with authorities limiting the use of the term “trade war.”  Social media posts about the conflict are also subject to censorship.   Until September 2019, U.S. producers reduced their capital investments and delayed hiring due to uncertainty caused by the trade war.  China has also agreed not to force U.S. companies to hand over their technology as a condition of activity in that country, under penalty of additional tariffs. And it will refrain from ordering its companies to obtain sensitive foreign technologies through acquisitions. The agreement also includes a commitment by both countries not to devalue their currencies in order to gain an advantage in export markets.
The two sides did not immediately distribute copies of the agreement in Chinese, raising the question of whether the translation issues were fully resolved and whether the final text in the Chinese version would be as demanding on the Beijing government as in the English version. As of September 2020, China had purchased only 53% of what would have been expected at that time (Figure 1, Panel a).3 Since the beginning of the year, imports of all covered goods amounted to only $65.9 billion, against a target of $124.9 billion. In the three quarters of 2020, China had bought only more than a third of what it promised in Trump`s deal that it would buy this year. (The full-year purchasing target is $173.1 billion.) Chinese imports from the U.S. have not caught up with their pre-trade war level and are 16% lower than the same date in 2017. Other senators from both parties have criticized Trump for the trade war, including Charles E. Grassley, Tim Kaine, Mark Warner, Elizabeth Warren, and Ron Wyden.  An analysis by Moody`s Analytics estimated that as of August 2019, 300,000 U.S. jobs had either been lost or not created by the trade war, including manufacturing, storage, distribution, and retail.  “I think this may be a useful pause in the downward spiral of U.S.-China relations,” Susan Shirk, a professor at the University of California, San Diego, said of the trade deal.
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