US lowers trade stance with China

Oct 8, 2021  | 2 min  | Ep4708

The Phase One trade deal brokered during the Trump Administration called for China to buy American to the tune of $207 billion. 

As of August 1, the Chinese are 30 percent behind pace according to the Peterson Institute for International Economics.  

The biggest sector of Phase One is manufacturing where only half the goal of $123 billion has been met. More than $43 billion in agricultural purchases are called for, and, to date, 92 percent of the target.

After more than eight months in office, the Biden Administration concluded their review of trade deals with China - signaling the intention to reduce tensions, albeit in a subtle manner. Here’s Peter Tubbs. peter.tubbs@iowapbs.org

 
Katherine Tai, United States Trade Representative:  “We continue to have serious concerns with China’s state-centered and non-market trade practices that were not addressed in the Phase One deal.  As we work to enforce the terms of Phase One, we will raise these broader policy concerns with Beijing.”  edit  “And we will also directly engage with China on its industrial policies. Our objective is not to inflame trade tensions with China.”
 
While the Biden White House is monitoring China’s adherence to the Phase One agreement negotiated by the Trump Administration, the current White House has already scrapped plans to negotiate a second trade deal. U.S. Trade Representative Kathering Tai said this week the U.S. will be lowering tariffs in areas where China has met goals while maintaining duties in sectors under dispute.
The administration is also promoting more domestic spending to improve the global competitiveness of the United States, focusing on education and infrastructure.
Katherine Tai, United States Trade Representative:  “Durable coexistence requires accountability and respect for the enormous consequences of our actions.  I am committed to working through the many challenges ahead in this bilateral process in order to deliver meaningful results.But above all else, we must defend – to the hilt – our economic interests.”  
For Market to Market, I’m Peter Tubbs

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