United States China Agreement

On 22 April, blind Chinese dissident Chen Guangcheng escaped house arrest in Shandong province and fled to the U.S. Embassy in Beijing. U.S. diplomats are negotiating a deal with Chinese officials that allows Chen to stay in China and study law in a city near the capital. But after moving to Beijing, Chen changed his mind and applied to seek refuge in the United States. The development threatens to undermine diplomatic relations between the United States and China, but both sides are avoiding a crisis by allowing Chen to visit the United States as a student and not as an asylum seeker. 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 Mr. Trump has already set a deadline for a new deal after the November election, and there is deep skepticism that the two countries will reach another agreement in the near future. President Trump and Chinese Vice Premier Liu He sign the agreement [PDF], a breakthrough in nearly two years of trade war between the world`s two largest economies. The agreement relaxes some U.S. tariffs on Chinese imports and requires China to buy an additional $200 billion in U.S. products over two years, including agricultural products and cars. China is also committed to imposing intellectual property protection.

But the agreement maintains most tariffs and does not mention large Chinese government subsidies, a long-standing concern of the United States, although Trump says these could be addressed in a future deal. A few days before the signing, the United States abandoned China`s name as a currency manipulator. On August 14, 2019, the Dow fell 800 points, in part due to rising trade tensions between the United States and China. [236] Nine days later, on August 23, the Dow fell 623 points on the day Trump informally ordered U.S. companies to immediately seek alternatives to do business in China. [237] [238] At the end of 2019, stock markets reached record levels after increasing due to the agreement between the United States and China on the signing of the first phase of a trade agreement. [239] [240] But the agreement has a lot of criticism on both sides that Trump`s tactics were economically harmful and that the agreement leaves many important economic issues unresolved. Chinese politicians and continental economists are divided over the trade war. [258] [259] [260] In an August 2019 NPR article, while some leaders of the People`s Republic of China argued for a quick solution to the trade war to save China`s economy, others said the country should retaliate against the United States and avoid an agreement at all costs. [257] 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.

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