By / bintoromover
Us China Bilateral Trade Agreement 1979
US President Barack Obama welcomes Chinese President Xi Jinping to a “sleeve summit” at Sunnylands Estate, California, to establish a personal relationship with his counterpart and facilitate strained relations between the United States and China. The presidents pledge to cooperate more effectively on urgent bilateral, regional and global issues, including climate change and North Korea. Obama and Xi also promised to establish a “new model” of relations, a reference to Xi`s concept, a “new kind of high-power relations” for the United States and China. For the initialization here at the Dongfang Hotel in Canton, there was Chen Jie, a deputy minister of foreign trade. He and Ms. Kreps hailed the agreement as a “great step towards a complete normalization” of China-U.S. economic relations. The United States and China have several unresolved issues regarding bilateral trade between the two countries. The trade deficit between China and the United States increased significantly, with the volume of imports from China growing much faster than U.S. exports to China. This large trade deficit has been a problem for both economists and policy makers.
Some argue that it is an indicator of China`s unfair trade practices, while others attribute the imbalance to the strength of the Chinese economy and production systems heavily influenced by state intervention. The Trump administration has put in place several customs measures to reduce the trade imbalance. U.S. Commerce Secretary Juanita M. Kreps signed the agreement in the canton after Chinese Foreign Trade Secretary Li Qiang signed it in Beijing. The various cities indicated that there was still some burden between the two counts of the agreement. Nevertheless, the initialization meant that Ms. Kreps had achieved an important goal during her visit to China.
The Trump administration is announcing drastic tariffs on Chinese imports worth at least $50 billion in response to China`s alleged theft of technology and intellectual property. After tariffs on steel and aluminum imports, the measures target products such as clothing, footwear and electronics and limit some Chinese investment in the United States. In early April, China imposed retaliatory measures on a number of U.S. products, fuelling fears of a trade war between the world`s largest economies. The move strengthens President Trump`s action against China following high-level summits with President Xi in April and November 2017. The Minister of Foreign Trade, Li Qiang, signs the trade agreements in Beijing “His statement to you. Kreps told reporters that she had carried “a lot of weight” with Chinese negotiators. Kreps said she was “particularly grateful for Deputy Prime Minister Deng and my host, Minister Li.” Ms. Kreps had left Beijing without agreement. And there were clear signs of acute tension between the United States and Chinese negotiators.
China seems to be in a hurry to conclude a trade agreement to tolerate textile quotas. The main reason is that the agreement would give China the most favourable treatment by the United States.