Us-China Agreement

The deal signed Wednesday has some victories for Mr. Trump: China has pledged to buy an additional $200 billion in U.S. goods and services by 2021 and to aggressively address trade practices that the Trump administration has criticized. But the text of the agreement does not provide enough information to determine how it will work in practice and it is not certain that China will interpret it differently from the United States. While U.S. businesses and farmers welcome these commitments, China only agrees to make purchases for the next two years, and what happens next is vague. The agreement stipulates that countries “progthea” that the increase in purchases would continue until 2025. The shopping list also leaves some questions unanswered: what will happen to China`s contracts with other countries for products such as soybeans? Will purchases distort commodity markets? The agreement provides the United States with certain benefits in financial services, including electronic payments, securities, fund management and insurance, but many of these changes were already underway. Already in 2017, in its attempt to ease tensions with the Trump administration, China had tried to give foreign companies greater supremacy in its financial sector, and U.S. banks and other companies held majority stakes in Chinese companies. On August 14, 2019, the Dow fell 800 points, in part due to rising trade tensions between the United States and China.

[236] Nine days later, on August 23, the Dow fell 623 points on the day Trump informally ordered U.S. companies to immediately seek alternatives to do business in China. [237] [238] At the end of 2019, stock markets reached record levels after increasing due to the agreement between the United States and China on the signing of the first phase of a trade agreement. [239] [240] Today we are taking an important step that has never been done with China in the direction of a future of fair and reciprocal trade, since we are signing the first phase of the historic trade agreement between the United States and China. Together, we are correcting the injustices of the past and creating a future of economic justice and security for American workers, farmers and families.

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