Although China already has a number of bilateral trade agreements, this is the first time it has signed a regional multilateral trade pact. The trade war between China and the United States (Chinese: 贸易战; Pinyin: Zhéngméi Méoyzhén) is a persistent economic conflict between China and the United States. In 2018, President Donald Trump began imposing tariffs and other trade barriers against China, in an effort to force China to change what the United States calls « unfair trade practices » and theft of intellectual property. [1] The Trump administration has stated that these practices may contribute to the U.S.-China trade deficit and that the Chinese government requires the transfer of U.S. technology to China. [2] In response to U.S. trade measures, the Chinese government accused the Trump administration of protectionism. [3] On 15 January 2020, the two sides agreed to a phase 1 agreement, but tensions remained high. Many Member States have already concluded free trade agreements, but there are restrictions.
The agreement`s weaker trade barriers could encourage global companies to avoid Trump`s tariffs on Chinese products to work in Asia rather than relocate them to North America, said Mary Lovely, a senior fellow at the Peterson Institute for International Economics in Washington. In September 2019, Matthew Shay, President and CEO of the National Retail Federation, said the trade war had « taken far too long » and had had a negative impact on U.S. businesses and consumers. He called on the Trump administration to end the trade war and reach an agreement to remove all tariffs. [246] Due to the pandemic, the signing of Sunday`s agreement was unusual, due to the holding of separate ceremonies in each of the 15 member countries, all connected by video. The trade minister of each country took turns signing a separate copy of the pact, while its head of state or head of government stood nearby and watched. Chinese politicians and continental economists are divided over the trade war. [258] [259] [260] In an August 2019 NPR article, while some leaders of the People`s Republic of China argued for a quick solution to the trade war to save China`s economy, others said the country should retaliate against the United States and avoid an agreement at all costs. [257] The agreement, the Comprehensive Regional Economic Partnership (R.C.E.P.), is limited in scope.