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Exclusive-U.S. calls for ‘concrete action’ from China to meet Phase 1 purchase commitments -Breaking

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© Reuters. FILEPHOTO: Flags from the U.S. and China are seen flying outside of a Shanghai company building on 16 November 2021. REUTERS/Aly Song

Andrea Shalal, David Lawder

WASHINGTON, (Reuters) – U.S. officials demanded Monday that China take concrete action to fulfill its promise to buy $200 billion more U.S. products and services under “Phase 1”, the trade agreement signed by ex-President Donald Trump.

According to officials, Washington had lost patience with Beijing and “not shown any real signs” that Beijing would resolve the gap between the two-year commitments for purchase that were expired at 2021’s end.

These comments were made just days before the U.S. government will release its full-year trade data. Analysts expect that this report will show significant gaps in China’s promise to increase U.S. farm, manufactured and energy purchases.

According to Chad Bown, a senior economist at the Peterson Institute for International Economics, China only reached about 60% of its goal by November.

The U.S. President Joe Biden claimed that the trade agreement did not address core issues with China’s state-led economic system. However, U.S. officials have been pressing Beijing to honor the signed deal.

“Because this deal was inherited, we approached the People’s Republic of China (PRC) to address its purchase commitment shortfalls. We did so to help U.S. farmers ranchers, manufacturers, and other stakeholders, as well to allow China to keep its promise. However, our patience is wearisome,” one official said.

China engaged with U.S. officials regarding the matter, however Washington wanted “concrete actions” and not “talks for a sake,” the official said.

Although U.S. officials stated they would press China to demonstrate “serious intention” for an agreement to purchase their commitments, the U.S. conceded that the arrangement offered little leverage to ensure compliance.

No matter how negotiations end, U.S. officials stated that they will continue to focus on the main problems in China’s state-led economic system while also working to increase U.S. competiveness through diversification of markets and collaboration with partners and allies.

On Tuesday, Sarah Bianchi, Deputy U.S. trade Representative, stated at a trade conference that China has failed to fulfill its commitments in the agreement and that the talks between Washington and Beijing have been difficult.

Trump signed the January 2020 agreement to end a trade war that lasted nearly three years between two of the largest economies in the world. But, the deal also placed tariffs on billions upon billions of dollars in imports from both sides.

Last week, a spokesperson from China’s Embassy in Washington stated that Beijing had worked hard to implement Phase 1, “despite the effects of COVID-19 global recession and supply chains disruptions.”

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