Here’s a breakdown of the U.S.-China phase one trade deal
High-level U.S. and Chinese officials will review Phase 1 of their trade deal during a videoconference on August 15, and are likely to voice mutual grievances amid increasingly strained relations between the two countries, according to two Reuters sources familiar with the plans..
US Sales Representative Robert Lighthizer and Vice Premier of China Liu He, the main negotiators of the two countries will take part in this meeting.
The plans were first reported by the Wall Street Journal. U.S. Trade Representative’s Office and Treasury Department did not respond to requests for comment.
In line with the terms of the first phase of the trade agreement signed in January, China has pledged to increase purchases of US goods by about $ 200 billion over 2017 levels, including agricultural and industrial products, energy and services..
But China, hit by a global recession due to the coronavirus, is lagging far behind the pace needed to boost purchases by $ 77 billion in its first year. Agricultural imports were below 2017 levels, well below the 50% increase required to meet the $ 36.5 billion 2020 targets.
Beijing has purchased only 5% of the energy needed to meet its first year goal of $ 25.3 billion.
One source told Reuters that Chinese officials hope to discuss other issues beyond the first phase of the trade deal..
«This is both the usual six-month debriefing and the period when relations continue to deteriorate. Naturally, there is something to discuss», – he said.
Ambassador of China to the USA Cui Tiankai said on Tuesday that there was always a plan for a high-level consultation six months after the pact, but the two sides were in regular contact to implement the trade deal.
«If they really have such a meeting, I think it will be very positive.», – Cui said during the Aspen Security Forum virtual event.
Donald Trump threatened to terminate the trade agreement over China’s response to the coronavirus pandemic, which began in the Chinese city of Wuhan. Tensions escalate due to US sanctions related to China’s security measures in Hong Kong.
The latest irritant between the world’s two largest economies is Trump’s threat to ban the US from using China’s TikTok video app unless sold to a buyer outside of China..
White House officials on Tuesday could not say how Trump’s proposal for the US Treasury to receive a significant portion of the proceeds from the sale of the application could be implemented. – it is possible that the American tech giant Microsoft.