China is still not up to par of a bargain for reduce we are trade surplus

A US and a Chinese flag are waving outside advertising building in Beijing, July 9, 2007.

Teh Eng Koon | AFP | .

BEIJING – China’s purchases of US goods are still insufficient of trade agreement levels, even as overall Chinese imports from the United States increased.

This according to the analysis out Monday from the US-based Peterson Institute for International economy.

In January 2020, before the coronavirus pandemic and below former US President Donald Trump, China agreed buy at least $ 200 billion more in US goods and services over the next two years, compared to the 2017 level. Known as the phase one trade deal, the purchase the agreement included specific agricultural, energy and manufactured products.

However, how of June, both Chinese and US government data indicated that China had bought less than 70% of the year- current goal, according to estimates by the Peterson Institute senior colleague Chad P. Bown.

Agricultural purchases again came closest to agreement levels, at 90% of the goal, according to US data cited by Bown.

The deficit comes as trade between two countries has grown, according to Chinese customs data.

Chinese imports from the USA in the first half of the year rose to $ 87.94 billion, up 55.5% for the same period in 2020 and up almost 49.3% from first six months of 2019.

Meanwhile, China has exported $ 252.86 billion worth of goods to the United States in the first half of 2021 – up 42.6% for the same period in 2020 ea rise of 26.8% from first half of 2019.

As a result, the United States remains The largest in China trading company on a single country, notwithstanding trade tensions that escalated under the Trump administration.

USA-China trade speaks to a standstill

In last For some years, under the Trump administration, the US has imposed tariffs on billions of dollars’ worth of Chinese Chinese goods in an effort to address longstanding complaints about issues such as shortage of market access and intellectual property protection. Beijing responded with their duties on US goods.

Since I got it office in January, President Joe Biden maintained Trump-era tariffs and sanctions on main Chinese technology companies like Huawei, while announcing additional penalties on Chinese entities.

But Biden “has not yet articulated a trade strategy or another approach that would be really effective in counter China’s economic strength “, Michael Hirson, practice head for China and Northeast Asia to Eurasia Group, he said Monday on CNBC’s “Squawk Box Asia”.

During a high-level meeting between the two countries”officials” on On Monday, Chinese Foreign Minister Wang Yi said the United States should remove tariffs as part of three broader requests from China, the ministry said.

Senior officials of the US administration did not mention the tariffs in a call with reporters on the meeting of Chinese officials with United States Deputy Secretary of Wendy Sherman state. Rather, US officials said Sherman noted unjust concerns a trade and economic practices.

Read more on China from CNBC Pro

The phase one trade agreement called for a review of the deal, but that meeting has yet to take place in part due to the coronavirus pandemic and a change in leadership of the White House.

During first year of the phase one trade agreement, in 2020, Chinese purchases were less than 60% of the goal, based on both of them countries’data, the Peterson Institute said.

of China trade surplus with the United States, which Trump tried to reduce, remained close to an all-time high of $ 32.58 billion in June, the customs data showed.

At the press conference in mid-July, Ministry of Trade spokesperson Gao Feng declined to confirm if the phase one the deal was still in course of execution.

Instead, he said China has always encouraged both sides to “work together to create an atmosphere and conditions for implementation of the agreement, “according to a translation by CNBC of his mandarin-language remarks.

– CNBC’s Yen Nee Lee contributed to this report.

Read More About Business News around the World here!


Leave a Reply