The White House's trade adviser on Monday said the U.S.-China Phase 1 trade deal would likely be signed in the next week, but said confirmation would come from President Donald Trump or the U.S. Trade Representative. White House trade adviser Peter Navarro, in an interview on Fox News, cited a report that Chinese Vice Premier Liu He would visit this week to sign the deal, but did not confirm it.
The ascension began in the late 1970s with a move to more open markets. It continued through aggressive central planning, utilizing the advantages of cheap labor, a devalued currency and a robust factory system to spread its products around the world. All of that changed the economy from slumbering rural decay to a prospering diverse superpower. The country now seems on a inexorable path to No. 1.
The Phase One Agreement is expected to be signed off by both parties during the first week of January. The Phase Two Agreement, however, is to be digitally focused. Senior US administration officials have stated that various issues ranging from digital trade to cross border data sharing and cyber intrusions will be addressed by the “phase two” negotiations between the two countries.
U.S. Trade Representative Robert Lighthizer said on Sunday that the phase one U.S.-China trade deal reached on Friday is “totally done,” and it will nearly double U.S. exports to China over the next two years. U.S. and Chinese officials announced on Friday that the U.S. and China had finally agreed to the phase one agreement after a contentious 18-month trade war.
President Donald Trump announced a “phase one” trade deal with China on Friday, saying Beijing had agreed to targeted purchases of U.S. goods and will avoid tariffs that had been set to go into place on Sunday. Trump said in a pair of tweets that the Chinese had agreed to “many structural changes and massive purchases” of American farm, energy and manufactured goods.
Chang said in an email that anything Beijing can do "will hurt itself more than us, and given how close its economy is to the edge of the cliff the regime could end up doing itself in by retaliating." He continued, "For four decades, we were told by elites and policymakers that we could not afford to upset China. Wednesday, President Trump did what his predecessors would not do -- defend America from a China that is going after us. The same power that is encroaching on Hong Kong’s autonomy is attacking our society across the board."
The Department of Commerce has again extended the temporary general license allowing American companies to sell to Huawei, the embattled Chinese tech company. The existing temporary license was set to expire Monday. The announcement is good news for Huawei and for American tech companies who rely on it as a key customer. The Commerce Department also said the extension is largely designed to help the rural US wireless providers who use Huawei's inexpensive equipment in their networks.
As countries increasingly vie to both achieve the highest levels of innovation-based economic growth and attract, grow, and scale innovative enterprises and industries, a growing number have turned to “innovation mercantilist” policies that seek to grow nations’ innovation-based firms and industries through policies such as local production requirements, export subsidies, weak intellectual property (IP) protection, discrimination against foreign firms, economy-specific technical requirements, and data localization requirements.
In the global race for technology leadership, many countries are resorting to “innovation mercantilism” to create unfair advantages for their local industries at the expense of foreign competitors. According to the latest edition of ITIF’s “Global Mercantilist Index,” China is in a class by itself on that front. Given the damage these mercantilist practices do to global innovation, the United States and other free-trading, rule-of-law nations must take stronger steps to push back.
The United States should partially disengage with the Chinese regime to combat its predatory economic practices, according to a recent report by Washington-based think tank The National Bureau of Asian Research. The U.S. administration should pursue defensive measures to stem the flow of critical technologies to China, and work on reaching a ceasefire in the nearly 16-month-long trade war, says the report, which was released Nov. 4.