Biden won’t immediately end phase one of China trade deal: NYT | China News

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US President-elect Joe Biden has said he will not immediately end the Phase 1 trade deal with China or reduce punitive tariffs on Chinese goods imposed by President Donald Trump, the New York reported on Wednesday. Times.
In an interview with a Times columnist, Biden said the United States needed to regain leverage power to use in negotiations with China.

“I’m not going to take immediate action, and so are the tariffs,” Biden said. “I’m not going to prejudge my options.”

“In my opinion, we do not have [leverage] again, ”he added.

‘Fight like hell’

The United States must develop a bipartisan consensus and increase government-led investment in research and development, infrastructure and education to better compete with China, according to the president-elect.

“I want to make sure we’re going to fight like hell by investing in America first,” Biden said.

As part of the phase 1 deal signed in January, China agreed to increase its purchases of US goods and services by at least $ 200 billion in 2020 and 2021.

The deal also leaves in place 25% tariffs on a $ 250 billion array of Chinese industrial goods and components used by U.S. manufacturers, and China’s retaliatory tariffs of more than $ 100 billion. of American products.

Biden’s team will pursue policies targeted at China’s “abusive practices”, including “the theft of intellectual property, product dumping, illegal corporate subsidies” and forcing “technology transfers” from U.S. companies to their Chinese counterparts, according to the interview.

The deal struck under Trump was seen as a significant step forward after a two-year trade dispute between the world’s two largest economies.

He set ambitious targets for China to boost purchases of American agricultural and manufactured goods.

But ties quickly deteriorated following the coronavirus pandemic and China’s imposition of a new national security law on Hong Kong.

The two sides exchanged threats and sanctions against individuals and companies, such as China’s video-sharing platform TikTok.

Official data also suggests that China’s imports of agricultural and manufactured goods, energy and services to the United States are well below the pace needed to meet a target of a $ 77 billion increase for the first year over the year. to purchases in 2017.

China’s purchases have increased in recent months, however, as its economy recovers from this year’s coronavirus lockdown.



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