The deal was attacked by Democratic leaders, including Senator Chuck Schumer of New York, who criticized the deal for failing to address Chinese state-owned enterprises and industrial subsidies. He suggested that President Xi was laughing privately from the United States and that China had “brought President Trump to the cleaning staff.” “This will affect the investment and growth outlook well beyond the coming months.” Details of the basic approach to mapping the 2020 annual targets for trade data are available in Bown (2020). Other hypotheses relate to the establishment of estimates for 15 different product categories, as the agreement provides only aggregate targets for the four sectors of manufacturing, agriculture, energy and services. The aim is to allocate product-level targets on the basis of the share of this product in all U.S. exports to China in 2017 of products covered by purchase obligations. See also the table below. But the agreement preserves most of Mr. Trump`s tariffs on $360 billion worth of Chinese goods and maintains the threat of additional penalties if Beijing does not comply with the terms of the agreement. The prospect of a deal has pushed stock markets to record levels during the holiday season and prompted the International Monetary Fund to say that an agreement to ease trade tensions between the two major global economic superpowers could prompt its officials to revise global growth forecasts for 2020. Trump said Wednesday`s agreement was a “phase one” agreement and promised that the government would address other issues, such as China`s government subsidies, in future negotiations. 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. “Our efforts have resulted in a transformational agreement that will bring benefits to both countries,” Trump said. “Never believe reports on anonymous sources. Get him out of President Trump or… [U.S. Trade Representative] Navarro said. He added, however, that the signing of the agreement would be made public as soon as possible and indicated that there were only a few steps left to finalize it. The United States will continue to collect a 25 percent tariff on about $250 billion in imported Chinese goods, the U.S. Trade Representative`s office said Friday. According to a USTR statement, tariffs to an additional $120 billion would be lowered to 7.5%. U.S.
and Chinese officials said this month that U.S. and Chinese officials would sign the first phase trade agreement “in the first week of January,” while neither Washington nor Beijing had confirmed the date of an agreement. The limited agreement provides for a pause in the trade war between the countries, with a withdrawal of some taxes and China saying it is ready to increase some U.S. imports, especially in the agricultural sector. “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 easy loopholes to exploit,” said Ker Gibbs, president of the U.S. Chamber of Commerce in Shanghai.