China fulfilled 89% of agricultural purchases from the United States within Phase 1 of the trade agreement between the two until July 2021.
On January 15, 2020, China and the United States signed the Economic and Trade Agreement, Phase 1.
Among other things, the agreement contains provisions relating to intellectual property, technology transfer, trade in food and agricultural products, and financial services.
According to the Commerce Department, US exports were boosted by China’s purchase commitments under the Phase One deal, but the US goods trade deficit continued to grow.
So far this year through July, the deficit increased 14.6% year-on-year to reach $ 187.2 billion.
According to Chad Bown, principal investigator at the Peterson Institute for International Economics, China’s annual purchases of U.S. products covered by the Phase One Agreement through July 2021 totaled $ 78.9 billion, or 30.8% of its goal of $ 114.1 billion. .
China’s agricultural purchases covered are below the committed mark, totaling only 89% of it.
However, China’s purchases of manufactured goods and energy remain far behind its targets, as China imports only 66% and 53% of the respective commitments, according to the Bown analysis.
The slowdown in the recovery of the Chinese economy hampered China’s import demand.
A WTO report indicated that the appearance of the Covid-19 pandemic in early 2020 has had a significant impact on production and employment.
In early 2020, China’s economy contracted by 6.8 percent. Virtually all sectors were severely affected by the pandemic, with the notable exceptions of financial services and information technology.
Starting in mid-2020, the economy started to recover, driven mainly by public investment and international trade.
Quick reactions in fiscal and monetary policy helped mitigate the economic repercussions of the pandemic; however, as a result of the stabilization measures adopted by the government, risks to financial stability may have increased.