China has just completed 60% of its commitment to buy US goods

 China has just completed 60% of its commitment to buy US goods

The US government and businesses are frustrated that China has not bought enough goods under the trade agreement under former President Donald Trump.

Bloomberg analyzed new data released on February 8 by the US Department of Commerce, showing that China only bought 62.9% of goods out of the $ 200 billion in goods and services that it pledged to buy more from the US until now. the end of 2021, according to the trade agreement signed in early 2020.

Energy is the sector most lacking, with only a third committed. Meanwhile, achieving the highest completion rate is for agricultural products, with 83%. Manufactured goods - the field that China is committed to having the largest increase in has only now reached nearly 65% ​​of the target.

Chinese Vice President Liu He and former US President Donald Trump in the signing ceremony in 2020. Photo: Reuters

Chinese Vice President Liu He and former US President Donald Trump in the signing ceremony in 2020. Photo: Reuters

The Union of American Manufacturers (AAM) and the American Federation of Labor called the numbers "disappointing". "Buying goods has never been the solution to the imbalance in trade between the US and China. The Chinese government can no longer keep up with its promises," said Scott Paul - president of AAM, "Cho Until the fundamental issues are resolved, such as state-owned enterprises, government subsidies, intellectual property rights violations, and lax environmental and labor laws, large trade gaps will persist. in".

The US annual goods trade deficit with China will continue to widen in 2021, to $355.3 billion, December 2021 data show. China has committed to buy $200 billion more in US goods and services than it did in 2017. This must be completed in 2020 and 2021.

U.S. Trade Representative Katherine Tai has frequently asserted that the Biden administration's concern lies not only in its purchase commitments, but also in industrial policy set forth by Chinese officials. USTR spokesman Adam Hodge said the agency has repeatedly reminded China of purchases in recent months. However, they have not seen any real signs of progress.

"The US is growing tired of waiting and whatever conclusion the negotiations come to, the reality is that the phase one deal does not solve the core issues" as the Chinese government still intervenes. "The United States will continue to work with our allies and partners, using all tools to protect our economic interests," Hodge said.

When the full-year data on services is released in July, China's shortfall figure could be even larger, said Chad Bown at the Peterson Institute for International Economics. Restrictions on movement because of Covid-19 have caused service exports to decline.

"Trump has taken the US-China trade relationship on a new path, starting with the trade war in 2018," Bown said. "Nearly four years later, the key lesson of the phase one deal is still the relationship. This relationship needs other terms too.