China Free Trade Agreements Us

James Andrew Lewis of the Center for Strategic and International Studies said the U.S. china needs a commitment to respect international trade rules and standards and to extend mutual treatment to U.S. companies in China. [316] The Chinese government has challenged the forced transfer of intellectual property as a mandatory practice and has recognized the effects of domestic research and development in China. [61] Former U.S. Treasury Secretary Larry Summers said that in some technological areas, Chinese leaders are the result of „enormous state investments in basic research“ and not „theft“ of U.S. real estate. [62] In March 2019, the National People`s Congress approved a new foreign investment law, which will come into force in 2020, expressly prohibiting the forced transfer of intellectual property from foreign companies and further protecting intellectual property rights and foreign trade secrets. China also planned to lift restrictions on foreign investment in the automotive industry in 2022. AmCham China`s political committee chairman, Lester Ross, criticized the bill and said the law was „rushed“ and „broad,“ and also criticized part of the law that gave it the power to retaliate against countries that impose restrictions on Chinese companies. [63] [64] [65] The trade war indirectly led some companies to go bankrupt. One of them, Taiwanese LCD panel manufacturer Chunghwa Picture Tubes (CPT), went bankrupt following an oversupply of panels and then a fall in prices, supported by vulnerability to trade war (caused by over-expansion in China), a slowing Taiwanese and global economy and a slowdown in the electronics sector.

[253] Economist Sheng Hong, director of the dissolved think tank Unirule Institute of Economics, said it would be good for China to yield to U.S. demand for fair trade, arguing that the „Chinese model“ of state capitalism was incompatible with its policy of market reform and damage to the Chinese economy. [258] In the midst of the closure of Unirule, after Hong was accused of threatening state security, Hong Beijing`s inability to contain internal criticism was compared to „driving in a car with a dirty windshield“. [258] When Trump introduced tariffs on steel and aluminum in March 2018, he said, „Trade wars are good and easy to win“[53] but when the conflict continued to escalate until August 2019, Trump said, „I never said China would be easy.“ [54] The United States has begun negotiating bilateral and multilateral free trade agreements with the following countries and blocs: Analysts have speculated that the trade war could affect the 2020 U.S. presidential election because tariffs have had a negative impact on farmers, a significant constituency for Trump. [241] [242] Analysts have also speculated about the impact of the trade war on Xi Jinping with regard to the internal political pressures to which he was subjected. [242] An article by Howard Gleckman of the Tax Policy Center in May 2019 argued that the effects of the trade war would eliminate „most or all“ of the benefits of the Tax and Employment Reduction Act for low- and middle-income households. [319] [320] The trade war has had a negative impact on the economies of the United States and China. [12] [13] [14] In the United States, this has led to higher prices for consumers and financial hardship for farmers. In China, the trade war contributed to the slowdown in economic and industrial output growth, which was already declining.

Many U.S. companies have relocated to other Asian countries by supply chain, raising fears that the trade war could lead to an economic „decoupling“ between the United States and China. [15] In other countries, the trade war has also caused economic damage, although some countries have benefited from increased production to fill the gaps.