To date, the U.S. merchandise trade deficit over the previous year has decreased by 16% from the previous year to $321 billion. The deficit will continue to shrink if Beijing meets its commitments to buy significantly more U.S. imports. Read the nearly 100-party trade agreement between the United States and China A1: China`s intellectual property theft from the United States and its relatively low intellectual property protection (IP) were among the main initial grievances highlighted in Section 301 of the Office of the U.S. Trade Representative (USTR) Section 301 Report. China has pledged in the past to improve its intellectual property environment; However, the Phase One agreement contains some procedural innovations that may lead to better monitoring, implementation and implementation of China`s commitments. The agreement requires China to publish an action plan explaining how and when China will meet its IP obligations. The agreement also requires China to strengthen its application and intellectual property in a number of areas and regularly publish data on the impact of these measures. The action plan, as well as regularly published ip application data, should provide the U.S. benchmarks to measure China`s compliance with its commitments. The deal leaves tariffs on about $360 billion in Chinese imports, with the government`s leverage hoping to generate concessions in the future. The agreement is written as a traditional trade agreement, with a series of substantive and procedural commitments from both sides, which will only be as strong as the extent to which they will be implemented by both parties.
For now, trade tensions between the world`s two largest economies, which have intensified over the past two years for much of the past two years, will be paused. However, many structural problems – particularly Chinese subsidies and other industrial policies – remain unresolved. It is not clear whether, when and how the “phase 2” negotiations between the two sides will progress. The 86-sided agreement facilitates criminal prosecution in China against those accused of stealing trade secrets. It contains provisions to prevent Chinese government officials from applying administrative and regulatory procedures to remove the trade secrets of foreign companies and to allow such information to end up in the hands of Chinese competitors. 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. The Phase 1 agreement requires China to strengthen its intellectual property regime in a number of areas, including illegally manufactured and falsified products and medicines. It also requires China to improve its protection of trade secrets and confidential trade information. China has also agreed on tougher penalties for IP theft to prevent theft. Derek Scissors, a China expert at the American Enterprise Institute, said the trade war had already given Trump an advantage, even though it did not force Beijing to change its economic policy: Trump`s tariffs reduced Chinese exports to the United States and reduced America`s trade deficit with China. The agreement aims to ease some U.S. economic sanctions against China, while Beijing must strengthen the purchase of U.S.
agricultural products and other products. For example, Mr. Trump cited beef, pork, poultry, seafood, rice and dairy products.