China Is Still Behind On Buying Enough U.S. Goods To Fulfill ‘Phase One’ Trade Deal

05/26/2021

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Evelyn Cheng | CNBC

BEIJING — As the trade deal between the U.S. and China runs into its second year, Chinese purchases are still running short of the agreed amount, according to the U.S.-based Peterson Institute for International Economics.

Both countries signed a phase one trade agreement in January 2020, just weeks before Covid-19 began to spread rapidly in China and subsequently turned into a global pandemic. The deal stipulated that relative to imports from the U.S. in 2017, China needed to buy at least $200 billion more in U.S. goods and services over the next two years.

To stay on track with the agreement, China would have needed buy $64.5 billion worth of U.S. goods during the first four months of this year, Peterson Institute senior fellow Chad P. Bown estimated in a report Tuesday, citing Chinese customs data.

However, the data showed China’s purchases of U.S. goods reached only 73% of the year-to-date target as of April, the report said.

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