US Calls for China to Meet Trade Deal Commitment
U.S. officials are calling for China to meet its commitment to purchase $200 billion in additional U.S goods and services during 2020 and 2021, according to multiple news reports. The agreement was set in place under "Phase 1" of the trade deal signed by former President Donald Trump.
The U.S. government will release its full-year trade data tomorrow where analysts expect to see significant shortcomings in China's commitment to increase its purchase of U.S. farm and manufactured goods, energy and services, Reuters said. As of November 2021, China had only met 60% of its goal, according to trade data compiled from Chad P. Brown, senior fellow at Peterson Institute for International Economics. Additionally, this data shows none of the three sectors China committed to purchasing from reached 100% of its goal, including:
- Agriculture (87%)
- Manufactured goods (64%)
- Energy (54%)
This resulted in a -8% growth in Chinese imports compared to the projected growth following the trade agreement. The U.S. will continue to press China to show serious intent to reach an agreement on its purchase commitments, and will continue to target the core problems of China's state-led economy, U.S. officials said.
Bryan Mason, editorial associate