China pressures US to remove tariffs, but breaks commitments

China is pressing for the United States to remove tariffs on imports of Chinese goods, but has reneged on commitments in a bilateral deal that halted a further increase in sanctioned goods, a US congressional analysis noted.

In the past administration, the United States Trade Representative (USTR) imposed tariffs on US imports from China worth an estimated $370 billion. The Chinese government responded with tariffs on $110 billion worth of American goods. Most tariffs remain in effect. “China is pressuring the USTR to lift US tariffs – which cover the products of the Made in China 2025 plan (MIC 2025) – while maintaining its practices that worry the United States,” questioned the same analysis.

He then added that the USTR may consider new actions against China under Section 301 in areas such as subsidies.

Among the products of the Made in China plan are new-generation technology goods, robots, agricultural machinery, energy equipment, high-tech medical devices, biopharmaceutical equipment, new-energy cars, maritime equipment and aerospace goods.

In the “first phase” of the trade deal signed in January 2020, China made some commitments on intellectual property and investment and increased US access to agriculture and financial services, but the deal did not address most of the issues. US concerns.

Many aspects of China’s industrial policies appear to be in breach of their commitments in the agreement not to require or pressure technology transfer,” the analysis said.

China’s 2020 and 2021 imports fell short of its commitment to buy at least $502 billion of US goods and services in two years (an estimated 43% gap in goods and services).

In 2021, China’s global exports grew 30% compared to 2020; its exports to the United States increased 28% compared to 2020.

As part of an investigation under Section 301 of the Trade Act of 1974, the USTR concluded in 2018 that China engages in forced technology transfer, cyber theft of United States intellectual property and trade secrets, discriminatory practices and non-commercial licensing and state-funded strategic acquisitions of US assets.

commercial ties

Trade ties between the United States and China are significant, but arguably unbalanced, with China exporting to the United States more than nearly three times the value of the goods that the United States exports to China.

As of 2021, China was the United States’ fourth largest trading partner for goods (with total trade of $657.9 billion), the fourth largest export market for the United States (with $152.5 billion), and the largest source of imports for the United States. (with 505.300 million dollars), if the European Union (EU) is considered as one more trading partner.

Total trade between the United States and China in 2021 increased 18% over 2020; US trade with other major partners grew at these rates: EU (18%), Canada (26%), and Mexico (23 percent).

roberto.morales@eleconomista.mx