Us Trade Agreements With China
The agreement limits more than two years of tense negotiations and increasingly intense threats, which at times appeared to have the effect of plunging the United States and China into a permanent economic war. Mr. Trump, who was running for president in 2016 promising to be tough on China, urged his negotiators to rewrite trade conditions that his party said would have destroyed U.S. industry and jobs, and he imposed record tariffs on Chinese goods to ensure Beijing complied with its demands. During the 2016 presidential campaign, a consequential waiver of then-candidate Trump was to refer to U.S. trade with China and the agreements that allowed him to be the main cause of job losses in U.S. production and intellectual property. He said China was responsible for the “biggest theft in the history of the world” and lamented the U.S. trade deficit with China, which saw $346 billion in 2016. He said: “We can no longer let China violate our country.” Building on Donald Trump`s image as the ultimate dealmaker, his campaign has released a strategy to reform U.S.-China trade relations, promising to “make a better deal with China to help American businesses and workers compete.” Trump has presented a four-part plan to reach a better deal with China: make China a monetary manipulator; to confront China with regard to intellectual property and forced technology transfer problems; ending China`s use of export subsidies and lax labour and environmental standards; and to reduce the U.S. corporate tax rate to make U.S.
production more competitive. In an april 2018 article in Forbes, Harry G. Broadman, a former U.S. trade negotiator, said he agreed with the Trump administration`s core position that the Chinese do not respect fair, transparent, market-based rules for global trade, but contradicted its means of unilaterally enforcing tariffs and said the government should instead adopt a coalition-based approach.  But these victories have a high price. Uncertainty created by Trump`s customs threats and trade approaches has weighed on the economy, raised business and consumer prices, delayed business investment and slowed growth around the world. Companies with China`s commitment such as Deere-Company and Caterpillar have laid off some workers and reduced revenue expectations, in part by referring to the trade war. Another way to compare customs taxes is to calculate the weighted average tariff, that is, the sum of duties collected above the sum of import values. China`s average tariff rate below this measure is 4.5% (compared to 14.1% in 2001), while the US level is 2.4%. For agricultural and non-agricultural products, China-weighted tariffs were 9.7% and 4%, respectively. Bloomberg describes the Chinese company as “a private equity firm backed by a Chinese public asset manager.” See www.bloomberg.com/news/articles/2017-09-13/trump-blocks-china-backed-bid-for-chipmaker-over-security-risk.
China Daily, “China outbound investment drops 29.4% in 2017,” January 16, 2018, in www.chinadaily.com.cn/a/201801/16/WS5a5dab1ea3102c394518f95c.html. Peter Navarro, director of the White House Office of Trade and Manufacturing Policy, said tariffs were “purely defensive measures” to reduce the trade deficit.  It says that the cumulative billions of dollars that Americans transfer abroad as a result of annual deficits are then used by these countries to buy U.S. assets, unlike the investment of that money in the United States. these billions of dollars are in the hands of foreigners who can then use them to buy America.  In August 2019, Peter Navarro, Trump`s trade adviser, said tariffs did not harm Americans. Politifact called Navarros` assertion “Pants on