The first anniversary on Jan. 15 of the signing of what had promised to be a major trade agreement between the two economic powers, the United States and Chinese Communist Party (CC). But the CCP failed to fulfill its commitments from the beginning, so the results were not the best and the bilateral relationship worsened month by month throughout 2020.
One year after signing the Phase One trade agreement, the CCP is still far behind in its commitment to increase purchases of American products, the South China Morning Post (SCMP) reported.
Since the signing and after more than a year of a trade war there has been an unprecedented escalation in the number of tariffs on imported goods from both countries.
The idea of the agreement, planned and negotiated by the Trump administration, was to end the trade war and develop a new relationship under the principles of “fair and reciprocal trade.”
Both sides agreed to compromise on certain issues. The CCP pledged to buy about $200 billion worth of U.S. goods over two years, including $50 billion in agricultural products, $50 billion in energy, and $75 billion in manufacturing.
In turn, the United States cut in half, to 7.5%, the tariffs imposed on Chinese imports worth $120 billion and canceled additional taxes.
However, one year after signing the agreement, the CCP has not fulfilled its purchase commitments and the U.S. trade deficit with the CCP is increasing.
In the first 11 months of 2020, Chinese purchases of products included in the agreement reached only 58% of their targets.
Imports of energy products by CCP were particularly low, reaching only 35% of the target to date, according to the Peterson Institute for International Economics (PIIE) report cited by SCMP media.
In contrast, Chinese customs data showed that the trade surplus with the United States rose by 7.1% to $316.9 billion in 2020, the second largest gap on record and a 14.9% jump from the $275.8 billion surplus in 2017, when President Donald Trump took office.
With respect to the delay in purchase compliance by the CCP, it has used the false argument of the CCP Virus to demand ridiculous safety standards from its American sellers to ensure that products do not arrive contaminated, resulting in huge delays and purchase cancellations.
The CCP’s demand generates suspicion among federal authorities and U.S. agricultural producers since most international specialists claim that there is no evidence that the CCP Virus can be transmitted from food to people.
“Efforts by some countries to restrict global food exports related to the transmission of COVID-19 [CCP Virus] are not consistent with what science has shown about transmission,” said U.S. Secretary of Agriculture George “Sonny” Perdue in a joint statement with Stephen Hahn, commissioner of Food and Drugs.
“There is no evidence that people can get COVID-19 from food or food packaging,” Perdue continued.
Meanwhile, President Trump, who has supported the agricultural sector since the beginning of his administration, is aiming to deepen other markets such as those of Canada and Mexico, through the U.S.-Mexico-Canada Agreement (USMCA), which went into effect on July 1, to replace the false promises made by the Chinese communist regime.
In summary, despite the enormous efforts by the Trump administration to achieve an end to the trade war, through the implementation of a fair economic system in which both parties would benefit, the CCP failed to fulfill its commitments, making it impossible to sign the second phase of the agreement.
This situation increased the tension in the relationship with the United States during 2020, already damaged by other issues such as the lack of diligence on the part of the communist regime in handling the CCP Virus that caused a global pandemic, the conflicts in the South China Sea due to the advances of the CCP in foreign territories, the controversial national security law in Hong Kong, the intimidation of the CCP on Taiwan, spies of the Chinese army stealing classified information from American universities, and so many other issues that are increasingly worsening the relationship between the powers.