What Is The Us Trade Agreement With China

The trade war has had a negative impact on the economies of the United States and China. [12] [13] [14] In the United States, this has led to higher prices for consumers and financial hardship for farmers. In China, the trade war contributed to the slowdown in economic and industrial output growth, which was already declining. Many U.S. companies have relocated to other Asian countries by supply chain, raising fears that the trade war could lead to an economic “decoupling” between the United States and China. [15] In other countries, the trade war has also caused economic damage, although some countries have benefited from increased production to fill the gaps. It has also caused instability in the stock markets. Governments around the world have taken steps to repair some of the damage caused by economic conflict. [16] [17] [18] [19] Both parties did not immediately distribute copies of the agreement in Chinese, which raised the question of whether the translation issues had been fully resolved and whether the final text would be as demanding by the Beijing government in its Chinese version as in the English version. The agreement also clarifies what happens when private companies or a government government think that someone is not up to the agreement. If the problem cannot be resolved at lower levels, the conflict in the chain of command may escalate until it reaches the offices of Lighthizer and his designated Chinese counterpart. The Chinese government has challenged the forced transfer of intellectual property as a mandatory practice and has recognized the impact of domestic research and development in China.

[61] Former U.S. Treasury Secretary Larry Summers said that in some technological areas, Chinese leaders are the result of “enormous state investments in basic research” and not “theft” of U.S. real estate. [62] In March 2019, the National People`s Congress approved a new foreign investment law, which will come into force in 2020, expressly prohibiting the forced transfer of intellectual property from foreign companies and further protecting intellectual property rights and foreign trade secrets. China also planned to lift restrictions on foreign investment in the automotive industry in 2022. AmCham China`s political committee chairman, Lester Ross, criticized the bill and said the law was “rushed” and “broad,” and also criticized part of the law that gave it the power to retaliate against countries that impose restrictions on Chinese companies. [63] [64] [65] Peter Navarro, director of the White House Office of Trade and Manufacturing Policy, said tariffs were “purely defensive measures” to reduce the trade deficit. [56] It says that the cumulative billions of dollars that Americans transfer abroad as a result of annual deficits are then used by these countries to buy U.S. assets, unlike the investment of that money in the United States.

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