In 2017, even before the start of the trade war, China bought $130 billion worth of U.S. goods and $56 billion in services, as U.S. data show. Not only does not rely on purchasing objectives address China`s problematic policy, which harms Americans, but it also helps to consolidate government planning, contrary to market results. In particular, because China continues to impose discriminatory retaliatory duties on U.S. exporters, only its state-owned enterprises, not the Chinese private sector, will increase many purchases to meet their commitments, the opposite of what U.S. politicians say they want. The objectives of the agreement also send signals to America`s allies that the United States is primarily interested in China diverting imports from its suppliers, rather than attacking China`s problematic policies and undermining their confidence in U.S. policy. 3. See appendix to the basic methodological approach. For more information, see Chad P.
Bown, Us China Phase One Tracker: China`s Purchases of American Products (September 2020), PIIE Chart, October 26, 2020. The 86-sided agreement facilitates criminal prosecution in China against those accused of stealing trade secrets. It contains provisions to prevent Chinese government officials from applying administrative and regulatory procedures to remove the trade secrets of foreign companies and to allow such information to end up in the hands of Chinese competitors. The agreement provides for increased legal protection for China`s patents, trademarks, copyrights, including improved criminal and civil proceedings to combat online violations, piracy and counterfeiting. Left: U.S. President Donald Trump holds Chinese Vice Premier Liu He after signing the “phase one” of the U.S.-China trade agreement in the East Room of the White House in Washington, D.C., January 15, 2020. Photo by Kevin Lamarque/Reuters So far, the U.S. merchandise trade deficit with China has fallen 16 percent, or $62 billion, from the previous year to $321 billion. The deficit will continue to shrink if Beijing meets its commitments to buy significantly more U.S. imports.