The agreement provides the United States with certain benefits in financial services, including electronic payments, securities, fund management and insurance, but many of these changes were already underway. Already in 2017, in its attempt to ease tensions with the Trump administration, China had tried to give foreign companies greater supremacy in its financial sector, and U.S. banks and other companies held majority stakes in Chinese companies. The deal signed Wednesday has some victories for Mr. Trump: China has pledged to buy an additional $200 billion in U.S. goods and services by 2021 and to aggressively address trade practices that the Trump administration has criticized. But the text of the agreement does not provide enough information to determine how it will work in practice and it is not certain that China will interpret it differently from the United States. Among the most important issues discussed in the negotiations with China was the question of how to enforce an agreement. After observing the agreements with China that they did not keep their promises, many U.S.
experts and leaders were skeptical that the Trump administration could lead China to meet its commitments. Trump campaigned for the signing of trade as a way to provide economic justice to American workers, whom he claims have been betrayed by previous governments and their trade policies. If these discussions are not able to resolve the dispute, other tariffs will come into effect. In such a scenario, the other party promises not to impose its own tariffs. If this is the case, one of the two countries can denounce in writing and withdraw from the agreement – and quickly bring the two countries back into a trade war scenario. The deal leaves tariffs on about $360 billion in Chinese imports, with the government`s leverage hoping to generate concessions in the future. The 86-sided agreement facilitates criminal prosecution in China against those accused of stealing trade secrets. It contains provisions to prevent Chinese government officials from applying administrative and regulatory procedures to remove the trade secrets of foreign companies and to allow such information to end up in the hands of Chinese competitors.
Left: U.S. President Donald Trump holds Chinese Vice Premier Liu He after signing “phase one” of the U.S.-China trade agreement in the East Room of the White House in Washington, U.S., January 15, 2020. Photo: Kevin Lamarque/Reuters The agreement also contains commitments, at least on paper, to stop the forced transfer of U.S. technology to its Chinese competitors. Companies have long complained about having to issue valuable business secrets and technologies to do business in China. China has pledged not to require such transfers, even if companies apply for certain government licenses or authorizations. Recognising the importance of their agricultural sectors, ensuring a safe and reliable supply of food and agricultural products, and supporting the demand for food and agricultural products from the peoples of both countries, [the contracting parties] intend to intensify agricultural cooperation, expand the market for food and agricultural products in each part and promote the growth of food and agricultural trade. WASHINGTON (AP) – The United States and China reached a trade agreement Wednesday that eases tensions between the world`s two largest economies, offers massive export opportunities for U.S.
farms and factories, and promises to do more to protect U.S. trade secrets. Ms. Vetter said that the agreement was surprisingly reciprocal in this area and that he had granted concessions that China wants to deal with more securely to the United States. While U.S. businesses and farmers welcome these commitments, China only agrees to make purchases for the next two years, and what happens next is vague.