U.s.-China Economic And Trade Agreement
And the agreement does little to solve more damaging structural problems related to China`s approach, particularly its model of subsidizing and supporting major industries that compete with U.S. companies such as solar and steel. U.S. companies accuse these economic practices of flooding the United States with cheap Chinese products. On February 14, 2020, the economic and trade agreement between the United States of America and the People`s Republic of China came into force: Phase 1. China has agreed to increase the purchase of certain U.S. goods and services to a total of $200 billion in 2020 and 2021 compared to 2017. This PIIE graph tracks China`s monthly purchases of U.S. products covered by the agreement, based on data from Chinese Customs (Chinese imports) and the U.S.
Census Bureau (U.S. exports). These purchases are then compared to the annual targets of the legal agreement, which are established monthly on the basis of seasonal adjustments on two basic scenarios (see methodology below). As outlined in the legal agreement, a baseline scenario for 2017 allows the use of U.S. export statistics and other Chinese import statistics. On December 4, 2018, the Dow Jones Industrial Average had its worst day in nearly a month, when it lost nearly 600 points, which some argue, was due in part to the trade war.  On December 26, the Dow Jones rose 1,000 points after the release, according to Reuters, of a report documenting strong holiday sales, although major indexes fell by more than 10% in December 2018, in the midst of the trade war.  An analysis by the Peterson Institute for International Economics showed that in January 2018, before the start of the trade war, China imposed uniform tariffs of 8% on average on all its importers. By June 2019, tariffs on U.S. imports had risen to 20.7%, while tariffs on other countries had fallen to 6.7%.  The analysis also showed that average U.S. tariffs on Chinese products rose from 3.1% in 2017 to 24.3% in August 2019.
 Today, we are taking an important step that has never been taken with China towards a future of fair and reciprocal trade, as we sign the first phase of the historic U.S.-China trade agreement. Together, we are correcting the injustices of the past and creating a future of economic justice and security for American workers, farmers and families. And it will be a great agreement for both countries.