Meanwhile, President Donald Trump and Chinese leader Xi Jinping are set to meet Thursday.
President Donald Trump and Chinese leader Xi Jinping are scheduled to meet this Thursday with a framework for a new trade deal already in place. Of course, this won’t be the first time that the two have met, nor will it be the first time that they’ve brokered a trade deal (if a formal deal is indeed to come this week).
Back in Trump’s first administration, the U.S. and China signed a “Phase One” trade agreement that largely focused on China’s purchase of U.S. goods from 2020 until 2022 and correction of its intellectual property theft and forced technology transfers. This agreement left a lot on the table, but it was meant to be the precursor to a Phase Two that addressed China’s major structural problems, like its rampant industrial subsidies, overcapacity, state-owned enterprises, and predatory investment.
Now, as Trump prepares again to meet with Xi, the United States Trade Representative (USTR) is revisiting that 2020 U.S.-China agreement and calling Beijing to task through a Section 301 investigation examining whether it failed to implement its Phase One commitments. It’s important to note that if the USTR investigation concludes that China did not follow through on its Phase One promises, the office may choose to impose additional tariffs on Chinese imports.
Here’s what Alliance for American Manufacturing President Scott Paul had to say about the pending investigation:
“There should be bipartisan support for this new Section 301 trade case targeting China’s noncompliance. I commend USTR for initiating it. China has proven time and time again that it is not a reliable trade partner. For decades, it has flouted the world’s trade rules and violated the agreement it’s made with the United States.
“Holding Beijing accountable for its flagrant disrespect of trade norms is an essential step to reaching a U.S.-China trade deal that defends America’s workers and manufacturers.”
As for the new U.S.-China trade deal that appears to be in the works, the Alliance for American Manufacturing has called on the Trump administration to sustain tariffs to stem the tide of Chinese imports that have flooded markets worldwide.
Trump’s latest comments suggest that he’s planning on lowering tariffs following Thursday’s conference, but the Section 301 investigation into Phase One may offer some additional leverage.