US-China trade war: phase one trade deal largely a 'failure', as purchases fall well short of target
Source: South China Morning Post
* China and the US signed their phase one trade deal in January 2020, with China committing to buy US$200 billion more goods and services over the next two years
* According to a report by the Peterson Institute for International Economics, US exports of phase one goods in 2020 fell more than 40 per cent short of the target
Andrew Mullen
Published: 5:30pm, 8 Feb, 2021
A large part of the phase one trade deal between China and the United States that entered into force almost one year ago was a “failure”, according to a new report, although “several elements are worth keeping and building upon”.
The US and China signed their long-awaited deal in January 2020, with the conditions of the agreement beginning one month later. As part of it, China committed to buying US$200 billion in additional goods and services over 2020-21 on top of 2017’s levels.
But a report released by the Peterson Institute for International Economics on Monday, US exports of phase one goods to China in 2020 fell more than 40 per cent short of the target.
“The Biden administration plans to review the phase one trade agreement president Donald Trump forged with China in late 2019. Good. Much of the deal was a failure,” wrote economist Chad Bown in the report, which was based on full-year analysis of US trade data released last Friday.
Read more: https://www.scmp.com/economy/china-economy/article/3120986/us-china-trade-war-phase-one-trade-deal-largely-failure
