China and the US come to a partial agreement: who wins the trade war

The US and China have agreed to the first part of a trade deal, which provides for the gradual elimination of US tariffs on Chinese goods, writes “Jellyfish".

Фото: Depositphotos

About it reported Ministry of Commerce of the PRC. This happened two days before the US planned to introduce new tariffs (some up to 25%) for Chinese imports with a total value of about 360 billion. If this happened, it would be one of the most serious blows of all time trade warthat began in the spring of 2018.

Как wrote US President Donald Trump on Twitter, China agreed to large purchases of US agricultural products, as well as energy and other products in exchange for tariff cancellation. He said that the previously introduced 25-percent tariffs will remain in force, and the 15-percent will be halved, and confirmed that the introduction of new barriers, scheduled for December 15, is canceled. According to the US president, the second part of the agreement should be concluded before the 2020 presidential election of the year.

Photo: Twitter screenshot

A year ago, the United States and China already entered into such a truce. Then Trump also planned to introduce record duties on Chinese products, but at the last moment reversed this decision. It was planned that the remaining contradictions would be resolved in the coming months, but no agreement was reached. The parties were close to an agreement in May 2019, however, Trump at the last moment refused to sign the agreement and instead introduced regular duties. In October, the US president reiterated that he expected a speedy agreement.

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On the eve of the deal, Politico announced that it would include China's obligation to protect American intellectual property, including directly at the request of the United States. The publication believes that during his election campaign, Trump will present the conclusion of the transaction as one of his main foreign policy achievements. Trump will be grateful to industrialists and farmers: China is committed to purchasing US $ 200 billion worth of US products over two years, including $ 50 billion worth of agricultural products. According to journalists, the latter was especially important for Trump, since it was the farmers in the United States who were most affected by the measures taken by China in response to US duties.

The current agreement does not remove the main contradictions that caused Trump to start a trade war: the US president believes that Beijing is stealing American intellectual property and, against the rules of trade, supports its enterprises. Critics of the president doubt that he will be able to achieve the adoption of other parts of the agreement, which were the purpose of the trade war. We are talking about more free access for foreign investors to the American market and the refusal of China to take measures to provide state support for its technological giants, including by manipulating the renminbi.

As reported by ForumDaily:

• In August, 2018, USA introduced new import duties in the amount of 25% for goods from China. The list includes a number of Chinese products with a total value of 16 billion dollars. These duties are the second part of the fees on goods imported from the PRC in the total amount of 50 billion. The first part was introduced on July 6 and concerned goods for 34 billion dollars.
• Trump warned China that in the case of mirror measures by Beijing, duties could be further extended to goods worth 267 billion dollars. Thus, taking into account the existing measures, duties will be imposed on almost the entire volume of Chinese imports in the United States, which exceeds 500 billion dollars a year.
• 20 February 2019 of the Year Trump demanded that China maintain a stable value of the yuan as part of trade negotiations between the two largest economies in the world. In particular, Washington hoped that Beijing would abandon the artificial devaluation of its currency in response to the introduction of US tariffs.
• 11 MAY Trump ordered to introduce customs duties on importing Chinese goods into the United States by about 300 billion more.
• Chinese authorities announced the on the introduction of increased duties on a number of categories of goods from the United States. In accordance with the decision of the Commission of the State Council on Customs Duties, from June 1 to 2019, the rates of duties on a number of goods imported from the United States with a total value of $ 60 billion will be increased and will total from 10 to 25%.

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