The deal signed Wednesday contains some victories for Mr. Trump: China has pledged to buy an additional $200 billion in U.S. goods and services by 2021 and to act against trade practices that the Trump administration has criticized. But the text of the agreement does not provide enough information to determine how it will work in practice, and it is unclear whether China will interpret it differently from the United States. Soybeans are a good example of the backlash against Trump`s trade policy. Before the trade war, they accounted for nearly 60% of U.S. agricultural exports to China. It is no coincidence that China chose soybeans in retaliation. Eight of the top ten soybean-producing countries voted for Trump in 2016, including many Swing States.8 This research guide provides selected sources of information for those studying U.S. trade with China.
For example, China`s average tariff rate was reduced to 15.3% in early 2001, about half of India`s level and roughly in line with tariffs in Brazil and Mexico. In addition, 60% of all imports are imported into China under one of many import duty relief programs. As a result, real customs revenues in China are extremely modest, below 5% of the value of imports. China`s leaders called it a “win-win” deal that would help improve relations between the two countries. Despite these efforts, it would be extraordinary if China were able to implement all its WTO commitments in full detail and on time. As part of the accession negotiations, the Chinese government has defined 177 domestic laws and regulations that should address customs administration, foreign investment management, intellectual property and services and need to be amended to ensure consistency with WTO obligations. Although a start has been made, the work of revising all these laws and approving by the legislator will probably take several years. It will take even more time to train judges and develop the necessary legal institutions and procedures to ensure that these laws are respected in a fair and impartial manner and that court decisions are enforced.