Not Reaching Target, China Only Fulfills 63 Percent of Trade Commitments with the US

Not Reaching Target, China Only Fulfills 63 Percent of Trade Commitments with the US


China only completed purchases of about 63 percent of the commitments to products in trade deals reached with the US during the Trump administration.

Reported by Bloomberg on Wednesday (02/09/2022), China purchased about 62.9 percent of the extra products promised as purchases worth US$200 billion in a phase one agreement over 2 years until the end of 2021.

This is in accordance with Bloomberg's analysis of data released by the Census Bureau of the Chinese Ministry of Commerce.

Energy is the sector that China misses the most, buying only a third of its promised exports.

China is close to achieving its full target in agricultural products, which is about 83 percent of total commitments. As for the products with the largest commitments, namely manufacturing, China only bought less than 65 percent of the total commitments.

The US industrial workers' alliance United Steelworkers said China's trade performance with the US was disappointing.

United Steelworkers President Scott Paul said commodity purchases were never the solution to improving US-China trade relations.

"The Chinese government can't even keep that promise," Paul said.

According to him, if issues such as China's state-owned enterprises, massive government subsidies, intellectual property theft, labor laws are not addressed, then the trade gap will remain.

Trade data in December showed that the annual goods trade deficit with China rose by $45 billion to $355.3 billion in 2021.

Previously, China had pledged to buy an extra US$200 billion in US agricultural goods, energy, manufacturing and services on top of its 2017 record in the two years to the end of 2021.


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