Gradually, but in a positive way, relations between the two countries seem to be consolidating, and results seem to be positive.
There have been several telephone communications between the American administration, through its commercial representative, Robert Lighthizer, with the Chinese Vice Prime Minister, Liu He, who has agreed, so far, to continue promoting the commercial agreement signed in January, 2020.
At that time, they undertook to evaluate the bipartisan operations, where, through semi-annual communications, and analyzing results, conditions were created to advance the signed commercial agreement towards the next phase.
These negotiations brought a truce to the long commercial confrontations between the countries that began long ago.
Although the guidelines of Phase 1 were met by 50%, communications between the two countries were meant to define Phase 2, always with the idea of strengthening the coordination of macroeconomic policies in the United States.
The coronavirus pandemic put this pact at risk, since it stopped trade, and destroyed all plans, due to a marked reduction in consumption. The trade discussions, proposed for August 15, 2020 in the midst of the pandemic, were finally postponed again, perhaps with the intention of waiting for an economic and commercial reactivation worldwide, as is public knowledge. Phase 2 will have to wait a little while, at least until both nations arrange a new meeting.
Phase 1 could be partially completed, and its purpose was to move towards “a more open, stable and transparent trade,” according to the managing director of the International Monetary Fund (IMF), Kristalina Georgieva.
Main bipartite commitments
Chinese commitments
- Increase by $200 billions (an amount higher than in 2017) its imports in the next two years, to reduce the trade deficit of the United States.
- The products to be imported are to be from automobiles and machinery to oil.
- The Chinese commitment was to cut tariffs on US imports worth $75 billion.
American commitment
- Reduction of some taxes on Asian products.
- Reduction from 15% to 7.5% of Chinese imports worth $120 billions, keeping intact about $250 billions that represent 25% of another group of imports.
Bilateral commitments:
- Protection of intellectual property: trade secrets, pharmaceuticals, patents, trademarks. Law enforcement on piracy and counterfeiting.
- Conditions for technology transfer.
- Technology transfer.
- Financial services: banks, insurance companies, credit cards, etc.
- Exchange policies: prevent currency manipulation.
Although the differences with China are multiple (Huawei, Tiktok, Wechat are the most mentioned lately), the efforts are great to keep the trade agreement alive after the post-pandemic world economic analysis.
Uncertainty in relationships have several conditions: political, economic, commercial, even media.
In order not to be left out of the commercial system, it is essential to have a good connection with the Asian countries.
International Law Firm Miami
Our international law firm has special knowledge of the Chinese market and can advise you on all commercial and legal developments, so that commercial insertion is at the right time and appropriate to the agreements between nations.
Being confident of our ability to project ourselves internationally at the right time, provides us with secure commercial effectiveness.