What Is The Trade Agreement With China Called

U.S. officials stressed that their current tariffs and the threat to the enforcement mechanism in the future. If China violates the agreement, the Trump administration could impose additional tariffs on Chinese products. And if China keeps its promises, some existing tariffs could be withdrawn by Mr. Trump. While other presidents have tried to change China`s economic approach, Mr. Trump has pledged to do so. The agreement calls for “China to ensure” that its purchases reach $200 billion by 2021, guaranteeing an export boom as Mr. Trump enters the 2020 election. Some countries have benefited economically from the trade war, at least in some sectors, as a result of increased exports to the United States and China, in order to fill the gaps created by the decline in trade between these two economies. The beneficiaries are Vietnam, Chile, Malaysia and Argentina.

[249] Vietnam is the largest beneficiary and technology companies are relocating their production there. [249] [250] South Korea also benefited from increased exports of electronics, Malaysia from semiconductor exports, Mexico from motor vehicles and Brazil from soybeans. [249] The effects of trade diversion have also had an impact on East and South-East Asian countries, with Taiwan receiving the largest boost. [251] However, the CEO of the ASEAN Business Council, Alex Feldman, warned that even these countries would not benefit in the long term: “It is in everyone`s interest that this sparrow be resolved and return to normal U.S.-China trade relations.” [252] Several Taiwanese companies have expanded their production domestic territory, including Quanta Computer, Sercomm and Wistron, creating more than 21,000 jobs. [253] This investment led to a strong strengthening of the New Taiwan dollar, which was not expected before the trade war. [254] Nintendo has reportedly relocated some Nintendo switch productions from China to Southeast Asia. [255] A Reuters article in March 2019 stated that the European Union shared many of the Trump administration`s similar complaints about China`s technology transfer policy and market access restrictions, and also indicated that diplomats and European officials recognized support for Trump`s goals, even if they did not agree with his tactics. [293] An analysis published by the Wall Street Journal in October 2020 showed that the primary objective of the trade war was not to revive U.S. production or to restart factory production.

Although the trade war led to increased employment in some sectors, tariffs resulted in a net loss of U.S. industry jobs. The trade war reduced the U.S. trade deficit with China in 2019, but this trend reversed in 2020, with the trade deficit returning to its pre-trade war level, while the overall U.S. trade deficit widened. [230] “We also need to be sure that the text of the agreement is the same in the Chinese and English versions – history has shown that differences become easily exploited loopholes,” said Ker Gibbs, president of the American Chamber of Commerce in Shanghai. In a painstaking ceremony at the White House, held by cabinet members, lawmakers and leaders of America`s largest corporations, Mr. Trump used the signature to counterbalance an impeachment process across the city, where lawmakers were about to vote in favor of the House of Representatives` approval of a Senate trial. China also expressed its readiness not to force U.S.

companies to transfer their technology as a condition of operation in that country, with additional tariffs. And it will refrain from ordering its companies to obtain sensitive foreign technology through acquisitions. The agreement also contains a commitment by both countries not to devalue their currencies in order to obtain an advantage in export markets.

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