The agreement prohibits coercion or pressure on foreign companies to transfer their technology as a precondition for market access, authorisation or benefits. The agreement also requires that any transfer or license of technology be based on voluntary market conditions and reflect mutual consent. Overall, U.S. exports of manufactured goods to China did not grow well in 2020 (Chart 2). In September, exports were 17% below pre-trade levels. Compared to purchase commitments, manufacturing represented only 56% of the seasonally adjusted target for 2020. Energy accounted for only 8% of the goods covered by the first phase`s purchase commitments, but their objectives were particularly questionable. Bloomberg reported that it was only after the agreement was signed that the government learned from U.S. industry that it did not lack the production capacity to meet the targets.10 In addition, the assessment of U.S.-China trade relations on the basis of a significant expansion of fossil fuel exports – whose objectives include only crude oil, liquid natural gas, coal and refined products – ignores global concerns about climate change. Left: U.S. President Donald Trump stands with Chinese Vice Premier Liu He after signing the «phase one» of the U.S.-China trade agreement in the East Room of the White House in Washington, U.S., January 15, 2020.
Photograph: Kevin Lamarque/Reuters 3. In the appendix, you will find the basic methodological approach. For more information, see Chad P. Bown, Us China Phase One Tracker: China`s Purchases of American Products (September 2020), PIIE Chart, October 26, 2020. 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.
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. As of September 2020, China had purchased only 53% of what was expected at this time of year (Chart 1, Panel a).3 Imports of all covered products were only $65.9 billion compared to a target of $124.9 billion. Up to three-quarters of 2020, China had bought only more than a third of what it had promised in the Trump deal it would buy this year. (The full-year purchase target is $173.1 billion.) Chinese imports from the United States failed to catch up with their pre-trade level and were 16% lower than the same date in 2017.