In December 2019, the South China Morning Post reported that the Chinese government`s trade war and crackdown on shadow banks led to an expansion of Chinese investment in manufacturing to its lowest level since registration began. [228] Today, we are taking an important step that has never been taken with China towards a future of fair and reciprocal trade, as we sign the first phase of the historic U.S.-China trade agreement. Together, we are correcting the injustices of the past and creating a future of economic justice and security for American workers, farmers and families. And it will be a great agreement for both countries. That is well over $200 billion, and it will grow every year. It also unites countries. In an article by Howard Gleckman of the Tax Policy Center in May 2019, he argued that the impact of the trade war would eliminate “most or all” of the benefits of the Tax and Employment Reduction Act for low- and middle-income households. [319] [320] The Chinese government argues that the real objective of the U.S. government is to curb Chinese growth and that the trade war has had a negative impact on the world. [58] [59] The Chinese government held the U.S. government responsible for the opening of the conflict and stated that the U.S. measures made negotiations more difficult. [59] Zhang Xiangchen, China`s ambassador to the World Trade Organization, said the U.S.

trade representative was working with a “presumption of guilt” and making assertions without evidence and relying on speculation. [60] 8Hongkong is a tariff-free region, with Concessions agreed by China being unilateral in nature, although formally accompanied by Hong Kong`s commitment in the agreement not to impose restrictions on imports from the PRC. In addition, both sides have pledged not to take reciprocal safeguard measures or initiate anti-dumping proceedings, the latter agreement which is currently intended to formalize the practice. Before entering the Chinese business market, there are a number of factors to consider, including culture, politics and business etiquette. Austrade can help Australian companies become familiar with local market conditions and help develop export opportunities through a number of market and Australian services. “We also need to be sure that the text of the agreement is the same in the Chinese and English versions – history has shown that differences become easy loopholes to exploit,” said Ker Gibbs, president of the U.S. Chamber of Commerce in Shanghai. The pact aims to open up Chinese markets to more U.S. companies, increase agricultural and energy exports, and better protect U.S. technology and trade secrets.

China has committed to purchase an additional $200 billion in U.S. goods and services by 2021, and is expected to ease some of its tariffs on U.S. products. Green says the U.S. will “regret” having two major multilateral agreements on the margins. He says this will bring two benefits to China: “On the one hand, there will be a narrative in the region that China is the new leader that has the most influence on trade and rules. And the second is that it will reduce barriers to trade with China at a time when the United States is doing nothing to reduce barriers to trade with the United States. 18Tableelle 2 summarizes the assessment of this second phase by Hong Kong`s business community shortly after it was signed. It should be noted that the evolution of Chinese legislation has partially rendered this assessment obsolete.