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Phase One Agreement Trade War

2023年7月13日

The Phase One Agreement: An End to the U.S.-China Trade War?

The U.S.-China trade war has been dominating headlines for over a year now, with both countries embroiled in a bitter battle over tariffs, intellectual property theft, and market access. However, on January 15th, 2020, the two nations signed a Phase One Agreement, which is being hailed by some as a significant step towards ending the trade war. This article will examine what the Phase One Agreement contains and what it means for the future of U.S.-China trade relations.

What is the Phase One Agreement?

The Phase One Agreement represents the first step in a larger trade deal between the U.S. and China. Under the agreement, China has pledged to purchase an additional $200 billion worth of U.S. goods and services over the next two years. This includes $77.7 billion in manufactured goods, $52.4 billion in energy products, $32 billion in agricultural products, and $37.9 billion in services.

In return, the U.S. has agreed to reduce some of the tariffs it has imposed on Chinese goods. Specifically, the U.S. will reduce a 15 percent tariff on $120 billion worth of Chinese imports to 7.5 percent. The U.S. has also agreed to cancel a proposed 15 percent tariff on $160 billion of additional Chinese goods.

Additionally, the Phase One Agreement includes provisions related to intellectual property protections, currency manipulation, and dispute resolution. China has agreed to more strictly enforce intellectual property laws and to refrain from devaluing its currency to gain a trade advantage. The two sides have also agreed to establish a mechanism for resolving disputes related to the agreement.

What Does the Phase One Agreement Mean for U.S.-China Trade Relations?

While the Phase One Agreement has been praised by some as a positive development, others remain skeptical. Critics argue that the agreement fails to address many of the underlying issues that led to the trade war, such as issues related to China`s state-owned enterprises and its discriminatory trade practices.

The Phase One Agreement also leaves many questions unanswered. For example, it is unclear how China will be able to meet its commitment to purchase an additional $200 billion worth of U.S. goods and services over the next two years. Additionally, the agreement does not address issues related to U.S. technology transfers to China or the Chinese government`s treatment of U.S. companies operating in China.

Despite these concerns, the Phase One Agreement represents a step in the right direction for U.S.-China trade relations. It provides some relief for U.S. farmers and businesses that have been hurt by the trade war, and it represents a temporary truce in the ongoing battle between the two nations. However, it is important to remember that the Phase One Agreement is just the beginning of a larger negotiation process, and much work remains to be done to resolve the underlying issues that have led to the trade war.