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  • 2 Post By hullexile
  • 8 Post By stickyears
  • 3 Post By stickyears

Biden trade advisor to say China isn't complying with Phase 1

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  1. #1

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    Biden trade advisor to say China isn't complying with Phase 1

    "U.S. Trade Representative Katherine Tai will announce Monday that China is not complying with the so-called phase one trade deal reached under former President Donald Trump’s administration, sources familiar with the matter told CNBC’s Kayla Tausche.
    Under the agreement, China was supposed to purchase an additional $200 billion in U.S. goods over a two-year period, but the nation has not lived up to that pledge, sources said.

    The announcement will represent some of the the Biden administration’s most forceful pushback against China. Tai will deliver remarks Monday on her review of China trade policy in Washington."

    Source:

    https://www.cnbc.com/2021/10/01/chin...y-sources.html

    So...what now?


  2. #2

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    Quote Originally Posted by Coolboy:
    "U.S. Trade Representative Katherine Tai will announce Monday that China is not complying with the so-called phase one trade deal reached under former President Donald Trump’s administration, sources familiar with the matter told CNBC’s Kayla Tausche.
    Under the agreement, China was supposed to purchase an additional $200 billion in U.S. goods over a two-year period, but the nation has not lived up to that pledge, sources said.

    The announcement will represent some of the the Biden administration’s most forceful pushback against China. Tai will deliver remarks Monday on her review of China trade policy in Washington."

    Source:

    https://www.cnbc.com/2021/10/01/chin...y-sources.html

    So...what now?
    Not wanting to defend China BUT there has been a pandemic for almost all that time. I know China has hardly been affected () according to their case and GDP figures but does anyone believe them?
    Coolboy and Gatts like this.

  3. #3

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    Quote Originally Posted by hullexile:
    Not wanting to defend China BUT there has been a pandemic for almost all that time. I know China has hardly been affected () according to their case and GDP figures but does anyone believe them?
    True. Despite what China claims, the pandemic certainly has affected demand in the country. Plus the fact the Phase I target was pretty unrealistic to begin with, China was never going to able to reach it even in a "normal" period of economic growth.

    Question is, if the USTR issue more tariffs due to this, what kind of retaliation will China resort to?

  4. #4

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    I'm shocked.

    Here is the list of other international agreements the CCP has signed and honoured at their end:






































    .


  5. #5

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    Quote Originally Posted by stickyears:
    I'm shocked.

    Here is the list of other international agreements the CCP has signed and honoured at their end:






































    .
    I get your point. CCP isn't known exactly to be a trustworthy partner that would adhere to a treaty's conditions. My issue here though is that Phase I set an unrealistic goal of Chinese purchase that was never going to be realized in any case. It was bound to fail. This "managed trade" idea where one country promises to buy X amount of goods and service from another country will always be more problematic and inferior to free trade where the the volume and type of trade is determined by market demand.

    Now I know, China has never really opened its domestic market to unfettered access for foreign firms. Even so, this "managed trade" idea, which Phase I essentially is, really isn't the answer either.

  6. #6

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    Quote Originally Posted by Coolboy:
    My issue here though is that Phase I set an unrealistic goal of Chinese purchase that was never going to be realized in any case.
    I think you'll find both sides were well aware of that. The US position was to prove the CCP can't be trusted (and if it did magically deliver it, it was a win), and the CCP can just ignore a deal they signed so service as usual

    Remember that China is in the WTO. But you can't get a Mastercard or Visa card in China, access Facbook or buy services from Google, Australian products of all types from wine to minerals are blocked due to supposed "quality" issues, and so on.

    I'm all for free trade, even unilateral free trade (allow tariff free goods in even if you are tariffed against - and HK is just that for those that doubt it exists) but the CCP uses trade as a weapon and links it to politics and power and generally takes the piss out of the openness of others. My personal position on that is at odds with my position as a business owner where I am subject to US trade penalty tariffs on my goods. Not for much longer though.
    shri, markranson and Jillypots like this.

  7. #7

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    Quote Originally Posted by stickyears:
    My personal position on that is at odds with my position as a business owner where I am subject to US trade penalty tariffs on my goods. Not for much longer though.
    Well, its' always better to practice what you preached.