The government acknowledges that the agreement has not resolved some U.S. complaints, particularly the way the Chinese government subsidizes its businesses. That was the concern expressed when Trump sparked a trade war in July 2018 by imposing tariffs on Chinese imports. Left: U.S. President Donald Trump holds Chinese Vice Premier Liu He after signing « phase one » of U.S.-China trade agreement in the East Room of the White House in Washington, D.C., The United States, January 15, 2020.Photo by Kevin Lamarque/Reuters Derek Scissors, a Chinese expert at the American Enterprise Institute, said the trade war had already given Trump an advantage, even though it did not force Beijing to further change its economic policy: Trump`s tariffs reduced Chinese exports to the United States and reduced America`s trade deficit with China. House of Representatives spokeswoman Nancy Pelosi, D-Calif., said in a statement that « in the face of the loss of thousands of jobs in the processing industry and the country farm, ravaged by the damage caused by President Trump, Americans have no choice but a striking television ceremony to try to conceal the total lack of concrete progress, transparency or accountability in this « phase 1″ agreement. » Washington, in order to maintain tariffs on Chinese goods until this year`s Phase 2 agreement, saw the U.S. merchandise trade deficit with China decrease by 16%, or $62 billion, from the previous year to $321 billion. The deficit will continue to shrink if Beijing meets its commitments to buy significantly more U.S. imports.
Trump campaigned for the signing of trade as a way to provide economic justice to American workers, whom he claims have been betrayed by previous governments and their trade policies. Mnuchin also objected to what he called a « bad indication, » suggesting that the world`s two largest economies had reached agreements outside the Phase 1 trade agreement. U.S. President Donald Trump will sign the trade pact with Chinese Vice Premier Liu He at a White House ceremony, marking a ceasefire after 18 months of tensions that have curbed U.S. trade investment and slowed global growth. « We need to make sure that this is properly implemented, » Lighthizer said. « This is the first agreement of its kind, and we need to make sure it works. » Harry Broadman, a partner at Berkeley Research Group and a former senior USTR official, said it was surprising that it took more than a month to translate the agreement into Chinese.