China failed to meet target trade levels with the United States in a year marked by disruptions from the pandemic and a severely strained relationship with the Trump government. At the end of December, China bought about 58.1% of the $ 172 billion in goods it pledged to buy last year under the “phase one” agreement with Washington, according to Bloomberg’s calculations based on data from the customs authority in China, and 60.4% of the goods. The targeted manufactured products and 64.4% of the food products, however, lagged significantly in energy, importing only 39% of the targets.
No wonder that China did not meet the target level after monthly data showed that it was late in its pledges throughout the year, and the latest figures showed that the country boosted its imports in December, especially LNG and vehicles, but to an extent that was not
Enough to meet the targets.
Under the agreement signed in January last year, China pledged to purchase additional US goods and services worth 200 billion dollars above the level of 2017 by the end of 2021, and with the agreement entering its second year, all eyes are on the new government headed by Biden, so will it try to renegotiate the agreement or not?
A hard-line approach
Biden told the New York Times last month that he would not take any immediate measures regarding tariffs on $ 360 billion of Chinese goods imposed by former President Donald Trump, and the new officials also indicated that the new government would continue to adopt a hard-line approach toward China. Yellen, Biden’s nominee for Treasury secretary, is fighting “abusive” business practices.
The trade agreement was not a gain for the United States as Trump had promised, and the US trade deficit with China grew to $ 317 billion last year due to the demand for medical goods and devices needed to work from home, and at the same time research by some economists proves that companies and American consumers are among the They paid for the higher tariffs, not the Chinese companies.