Despite tensions, Washington and Beijing confirm trade deal

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4 min

The United States assured this Tuesday, August 25 that they were committed with China to work for the success of their trade agreement, according to a statement from the American administration.

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They hadn't spoken for months. In the midst of the collapse of bilateral relations, Chinese and American negotiators reached an agreement on Tuesday to implement their trade agreement, the last common ground between the two powers.

Coronavirus, espionage, Hong Kong, human rights, technological rivalry and consulates automatically closed ... The reasons for confrontation have not failed since Beijing and Washington signed on January 15 a so- called "phase" agreement a ” suspending two years of trade war.

Less than 10 days later the Covid-19 epidemic broke out, followed by the most serious post-war global economic crisis. Commitments made by China to buy more American products may have appeared in jeopardy.

Nothing like it according to the communiques published this Tuesday by the two governments. "  The two parties note progress and are determined to take the necessary measures to ensure the success of the agreement  ", underline the services of the American representative to the Trade ( USTR) Robert Lighthizer after a conference call with Chinese Vice Premier Liu He. Lightsizer clarified that US Treasury Secretary Steven Mnuchin also attended the phone meeting.

The Chinese Ministry of Commerce, for his part, reported a "  constructive dialogue on strengthening the coordination of macroeconomic policies of the two countries. The two sides agreed to create the conditions and atmosphere for further advancing the implementation of the first phase of the China-US economic and trade agreement.  "

200 billion

Under the January deal, China pledged to purchase an additional $ 200 billion in US goods and services over two years. In return, the Trump administration pledged to postpone any further increase in tariffs on Chinese products.

But the Covid-19 has been there, with a drop in international trade. At the end of June, less than half (46%) of the purchases expected at this stage had been made by Beijing, according to data compiled by the Peterson Institute for International Economics (PIIE).

China, where the Covid-19 first appeared at the end of last year, nonetheless posted an increase of more than 7% in its total exports last month, the highest since the beginning of the year, and a further rise in its trade surplus with Washington, to over $ 32 billion.

Promise to American Farmers

In his statement, the US trade representative said the two sides "  discussed the steps China has taken to effect structural changes  " required under the agreement. These measures are aimed at ensuring greater protection of intellectual property rights, breaking down barriers to American companies in the areas of financial services and agriculture, and eliminating forced transfers of technology.

"  The parties also discussed the significant increase in purchases of US products by China as well as future actions needed to implement the agreement,  " the Trump administration added.

A few months before the presidential election of November 3, for which he seems in difficulty, Donald Trump and his team have stepped up attacks against the Chinese regime. But the trade deal was a promise the White House tenant made to American farmers who suffered from the trade war, as Beijing cut back on purchases of products such as soybeans.

► To read also: China takes possession of the American consulate in Chengdu

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