US China In Need of Trade
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It’s been almost a year since China and the U.S. signed their Phase one deal easing trade between the two nations.
A year ago on Wednesday, President Trump signed a deal with the Chinese Vice Premier, to relax U.S tariffs on Chinese goods. In return, China agreed to purchase more from American manufactured goods, farms, and the energy sector.
China agreed to purchase $77.7 billion more manufactured goods in the coming 2 years. From the energy sector, China agreed to make purchases worth $52.4 billion. China was to ensure additional buying of agricultural products of the U.S by $32 billion, compared to $12.5 billion of 2017. The deal would help the U.S to gain an average annual increase of about $40 billion.
On the other side, the U.S. agreed to cut off the tariffs by 50% imposed on September 1st. The tariffs were applicable on a list of Chinese products of $120 billion at 7.5%.
However, the 25% of U.S tariff on the other list of $250 billion of Chinese goods would remain intact. The U.S would think of revising those in the Phase 2 trade agreement said U.S treasury Secretary.
With the new administration, all eyes are on Joe Biden that how would he enter the next phase of trade. As the U.S. is desperate to get out of its ambiguous political policies and coronavirus.
Particularly after the Chinese President to the chairman of Starbucks to persuaded him to continue trade. Mr. Jinping encouraged Mr. Schultz on his positive role to promote bilateral trade between the countries.
Authors are suggesting that with the new administration the tide seems to have settled a bit. The countries should find ways to manage their issues if not resolve them and press “reset” on relation. The relation of both countries has gained more significance than ever to stabilize the world economy, unsettled by COVID. Chinese analysts say now there is an opportunity to turn the pages and settle the difference with dialogues and arrangements.
Biden has assembled a team of technology and commerce specialist for the trade negotiations with China. Reportedly, the team includes Gina Raimondo, previously Governor Rhode Island, now appointed as secretary of commerce. Ms Katherine Tai has been appointed as U.S trade representative, she previously served as chief trade counsel of the U.S House-Committee.
China on the other hand is also making efforts at establishing a virtuous negotiating team. They have appointed their deputy commerce minister also as trade representative to bridge the distance of negotiation.
Trade experts have reported that there have been calls from both sides to initiate trade negotiations. Mr. Biden who has been tasked with the duty to revive the trade relation between both countries seems very calm.
The way to settle should not only be by dialogue but with work that promotes the other side to cooperate. Mr. Yu deputy commission china believes the art of this negotiation shall be to manage both sides.