Biden Reviews China's Performance Under Phase 1 Trade Deal

Summary:

U.S. President Biden has instructed federal agencies to evaluate China's compliance with the Phase 1 trade agreement signed in 2020. The deal aimed to boost U.S. exports to China by $200 billion over two years, but China fell short due to the COVID-19 pandemic.

Key Points of the 2020 Deal:

* China's Import Targets: China pledged to increase purchases of U.S. goods and services by $200 billion over two years, based on a 2017 baseline.
* U.S. Tariff Relief: The U.S. reduced tariffs on $120 billion worth of Chinese goods from 15% to 7.5%, while suspending tariffs on an additional $160 billion worth of products.
* Intellectual Property Protection: China enhanced legal protection for patents, trademarks, and copyrights. It also pledged to end forced technology transfers from foreign companies.
* Currency Provisions: China promised to avoid currency devaluation and exchange rate manipulation for competitive advantage.

Current Status:

In 2020, China's imports from the U.S. reached $135 billion, falling short of the target. However, in 2021, imports rose to $178 billion. The U.S. is reviewing China's compliance with other provisions of the deal, including intellectual property protections and currency management.