On January 15, President Trump and Chinese Vice Premier Liu He signed the historic and enforceable Phase One of the US-China trade agreement at the White House, ending the two-year trade conflict between the US and China. Originating on March 22, 2018, while signing the annual trade memorandum, Trump accused China of stealing U.S. intellectual property rights and trade secrets, and required the US Trade Representative to tax the up to $60 billion US dollars import goods from China in accordance with Article 301 of the 1974 Trade Act. It kicked off the war of tariffs on trade commodities between the US-China.
On July 6, 2018, the US launched a 25% additional tariff on US $ 34 billion worth of Chinese export goods to the US; the Chinese Ministry of Commerce fought back on the same day and imposed an additional 25% tariff on US $ 34 billion worth of US exports to China. On August 24, 2019, China announced that it would stop purchasing U.S. agricultural products, impose a 10% or 5% tariff on approximately US$75 billion US goods, and resume tariffs on U.S. automobiles and their parts. On the second day, the tax rate of US $ 300 billion of Chinese goods was levied to 15%, and the current rate of 250 billion Chinese goods was levied from 25% to 30% as a countermeasure, but it was later shelved.
Come and go, a series of trade offenses and defenses, because China miscalculates the situation and adopts a big scale counter-attack against Trump, which triggers a severe back fight by the Trump team, causing China to suffer unprecedented hits. After all, there is a huge trade deficit between the US and China, with $ 419 billion in 2018 and $ 353 billion in 2019. Will Xi Jinping continue to play? Last year, Chinese society from real estate, the Internet, film and television entertainment, processing and export, manufacturing, and other industries were suffering from the ravages of the cold winter.
The contents of this 96-page, U.S.-China Phase One trade agreement mainly require China to make various contributions. China shall appear 82 times and ask China to abide a series of commitments and rules. The US will consider whether to reduce tariffs and exempt punishment based on China's performance. To sum up, it includes seven major areas: protecting intellectual property rights, ending forced technology transfer, increasing purchases of US agricultural products, removing restrictions on US financial services, ending currency exchange rate manipulation, expanding trade commitments from China to import various US goods, and effective dispute resolution mechanisms. Specifically, China promised to import various US goods and services over the next two years in a total amount that exceeds China’s annual level of imports for those goods and services in 2017 by no less than $200 billion, including $52 billion of energy, $78 billion of manufacturing goods, $32 billion of agricultural products, and $38 billion of services. China also agreed to strengthen intellectual property protection, improve criminal and civil procedures to combat online infringement, piracy, and counterfeit goods, end forced technology transfer from foreign companies to Chinese companies, and agree to abolish securities companies, insurance companies, Futures companies and fund management companies' foreign equity caps allow US financial companies to own 100% of shares.
The most-favored-nation treatment benefited China to make a fortune
After Deng Xiaoping initiated the historic Reform and Opening-up of China on December 18, 1978, China worked out their own way to make living, due to the hard work of the people, the economy finally made rapid progress, especially in September 2000 President Clinton signed the Congressional bill to grant China permanent normal trade. The 10-year annual review of the US Congress that has plagued Sino-US Relations has finally come to an end on the issue of China's most-favored-nation treatment. With this special courtesy, China makes a lot of money from the US every year. It has long been crowded into the world’s economic powers, but is so proud that it has to push the One Belt and One Road to lead the world and forget the spirit of the basic legal system that the economy and society should adhere to prevent plagiarism and counterfeiting, and protect intellectual property rights.
There is a saying: easy from simple to extravagant, but hard from extravagant to simple. At that time, the Chinese people were generally poor, so they could survive any bitter days of clenching their teeth. But now that the people have passed through a period of subsistence and fullness, they are suddenly hit by an economic winter, and they are afraid that the people's lives will not last. Someone blame Liu He, and he should not sign the so-called new version of the "Shimonoseki Treaty", which ridicules his country and ridicules him as "Liu Hongchang." In fact, China has long known that if it does not sign a contract, it will face a more severe and horrific comprehensive attack. Staying in the mountains, not afraid of burnt material; to this point, Xi had no choice but to re-enact the revolutionary spirit of the Red Army and the 5600-mile Long March, and had to accept the agreement and sign it unconditionally.
In fact, critics have exaggerated it at all, because the treaty of Shimonoseki ceded in perpetuity the full sovereign of Formosa and the Pescadores to Japan and paid a war indemnity, It makes Taiwan has also had no any relations with China since 1895. The trade agreement, which has neither land cessation nor war indemnity, only requires China to abide by the rules of the international community's commitment to free trade. Trump just wants to integrate China's economic policy into the framework of the US legal system, so that the US can take control of China's economic policy and implement an uninterrupted and precise blow to the rule of law. Hopefully this can completely stop the long-term China's theft of intellectual property rights, the production and sale of fake and shoddy products, and make huge profits; stop China's requirements and enforce the hegemony of technology transfer; strictly control the international financial order and prevent money laundering, to prevent international financial runaway and prevent social turmoil and collapse caused by economic depression in Chinese society.
Reviewing this trade war, it is a confrontation between state runs business and private enterprises in a democratic economic market. Trump came prepared and fought a battle he wanted to fight, and it was steady, accurate, and fierce. On the other hand, Xi was overwhelmed and relied on the irrational head of the people's Boxer Rebellion. Of course, he did not have the ability to fight it. In the end, he had to confess his losses and pledge to sell. In retrospect, economic collapse is often a precursor to the collapse of the empire. Not far from the disintegration of the Soviet Union in 1991, Xi was a clever man, with a lot of pains and pains in mind, during the US-China trade truce due to the US presidential election, to recharge his knowledge, uphold commitments and abide by the international trade rules . Then the Phase II trade war may get a good score; of course, it is also possible that Xi's empire collapsed and disintegrated, and it has since entered history.
For Xi Jinping, the year of rat could just like a rat dug hole smoothly in and out, bringing him new hope and fortune; or it could be a rat running across the street, covering his head sneak away like from attack. Wuhan pneumonia virus outbreak had a direct impact in the beginning of the year of rat, economic recession, labor unemployment, student strike, Hong Kong anti-extradition protest, Uyghur struggle for freedom, these are waiting for him to deal with. A slightly negligence could trap him a big disaster. Rat comes a new way open, it should be a happy golden new year. Urging Emperor Xi gives up his unlimited term of presidency, abandon his one-man dictatorship and no more bully Taiwan. Let the world live a prosperous and peaceful year for everyone!