China Us Trade Agreement Phase 1

U.S. President Donald Trump`s phase-one trade deal with China, one of the few chances of success in three years of damaging trade wars, died slowly when the economic devastation of the coronavirus pandemic made its ambitious and ambitious trade goals virtually unattainable. Some countries have benefited economically from the trade war, at least in some sectors, as a result of increased exports to the United States and China, in order to fill the gaps created by the decline in trade between these two economies. The beneficiaries are Vietnam, Chile, Malaysia and Argentina. [249] Vietnam is the largest beneficiary and technology companies are relocating their production there. [249] [250] South Korea also benefited from increased exports of electronics, Malaysia from semiconductor exports, Mexico from motor vehicles and Brazil from soybeans. [249] The effects of trade diversion have also had an impact on East and South-East Asian countries, with Taiwan receiving the largest boost. [251] However, the CEO of the ASEAN Business Council, Alex Feldman, warned that even these countries would not benefit in the long term: “It is in everyone`s interest that this sparrow be resolved and return to normal U.S.-China trade relations.” [252] Several Taiwanese companies have expanded their production domestic territory, including Quanta Computer, Sercomm and Wistron, creating more than 21,000 jobs. [253] This investment led to a strong strengthening of the New Taiwan dollar, which was not expected before the trade war.

[254] Nintendo has reportedly relocated some Nintendo switch productions from China to Southeast Asia. [255] The U.S. agricultural belt, with its oversized influence in U.S. policy, has been China`s most whistleblower target for Trump`s tariffs. Agricultural exports grew relatively well before the trade war, but suffered.6 Unlike hard-hit U.S. producers, U.S. farmers received tens of billions of dollars in federal subsidies in 2018, 2019 and 2020. Agriculture accounts for only 22% of the products covered by the purchase obligations, less than a third of the size of the manufacturing industry. Nevertheless, the Phase 1 agreement did not resolve Washington`s fundamental differences with Beijing, which depends on massive state intervention in the economy to turn China into a technological powerhouse. On December 4, 2018, the Dow Jones Industrial Average had its worst day in nearly a month, when it lost nearly 600 points, which some argue, was due in part to the trade war. [234] On December 26, the Dow Jones rose 1,000 points after the release, according to Reuters, of a report documenting strong holiday sales, although major indexes fell by more than 10% in December 2018, in the midst of the trade war.

[235] Other senators from both parties have criticized Trump for the trade war, including Charles E. Grassley,[283] Tim Kaine,[284] Mark Warner,[284] Elizabeth Warren,[285] and Ron Wyden. [20] An analysis by Moody`s Analytics estimated that by August 2019, 300,000 U.S. jobs had been lost or not created as a result of the trade war, including production, storage, distribution and retail. [224] “The place in the government went through “Should we drop the deal?” said Derek Scissors, a Chinese trade expert at the American Enterprise Institute, who sometimes consults with the White House. Trump wants to make sure that [future Democratic presidential candidate Joe] Biden can`t overtake him over China. But this dramatic action, if it exists, will have a cost. A senior Trump administration official said the currency agreement was based on provisions of the U.S.-Mexico trade agreement, which require the three countries to disclose monthly data on international reserve balances and foreign exchange market interventions, as well as quarterly balance-of-payments and other government reports to the International Monetary Fund.