But the deal has a lot of criticism on both sides that Mr. Trump`s tactics have been economically damaging and that the deal leaves many important economic issues unresolved. 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. 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.
Third, the United States should be very careful in applying the highly protectionist characteristics that China has demanded as a condition of WTO membership. For example, under the product-specific protection contained in the November 1999 bilateral agreement, the United States will have the opportunity to impose unilateral import restrictions from China under conditions that no other WTO member has ever had to accept. Moreover, these conditions are relatively easy to comply with and the resulting restrictions can only apply to imports from China. Under normal WTO safeguards, all supplier countries must, when the conditions for their use are met, apply proportional restrictions. Since product-specific protection conflicts with the WTO`s most fundamental principle of equal treatment for all countries, the United States should invoke this instrument against China only in exceptional circumstances. 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. “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. In his January 2020 trade deal with China, President Donald Trump argued that his trade war with China was a success. In its self-proclaimed “historic” agreement, China committed to purchase other U.S. goods and services in 2020 and 2021. Trump even boasted that the deal “could be closer to $300 billion once it`s done.” In a message to Trump, Chinese President Xi Jinping said the agreement was “beneficial to China, the United States and the world.” Xi also said the agreement shows that both countries can find appropriate and effective solutions to problems “on the basis of equality and mutual respect through dialogue and consultation.” 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.