Soybeans are a good example of the anti-Trump reaction to trade policy. Before the trade war, they accounted for nearly 60% of U.S. agricultural exports to China. China did not choose soybeans for random retaliation. Eight of the top 10 soybean-producing countries voted for Trump in 2016, including many major Swing States.8 For Mr. Trump and other supporters, the approach to past trade agreements, which have outsourced businesses and led to the loss of jobs and industries, corrects. Critics say this is the kind of controlled trade that the United States has long criticized, particularly with regard to China and its control over its economy. Stephen Vaughn, former USTR general counsel and legal architect of tariffs on Chinese products, said compliance with the agreement would also benefit China by preventing further deterioration of relations with the United States. Now that its economy is recovering strongly from the coronavirus pandemic, Beijing has little excuse not to increase its purchases, he added. Other U.S. agricultural exports also outperformed their current targets, albeit on a smaller scale. Until September, maize exports to the United States were higher than the commitment, in part because China had complied with a 2019 WTO ruling against its unoccupied tariff quotas. (To do this, China also increased maize imports from other countries by more than 200 percent in 2020 from 2017 levels.9) U.S.
cotton sales to China also improved in 2020. But for Trump`s aggregate ratios, hundreds of millions of dollars in additional sales of pork, corn and cotton are fading from billions of dollars in lost soybean sales. U.S. trade with China is part of a complex economic relationship. In 1979, the United States and China re-established diplomatic relations and a bilateral trade agreement was signed. This gave the beginning for rapid growth in trade between the two nations: from $4 billion (exports and imports) this year to more than $600 billion in 2017. Until February 2019, China was the largest trading partner of the United States and currently ranks third behind Canada and Mexico, while it remains the largest source of imports. Over the decades, Chinese exports to the United States have shifted from low-value, labour-intensive products to capital-intensive goods.
It is now one of the leading suppliers of advanced technology products in the United States and the global supply chains in which China and the United States are involved are complex. In addition, China is the largest holder of U.S. Treasury bonds. The EU and China discuss trade and investment strategies and issues in a series of dialogues: the Free Trade Agreement between China and Switzerland officially entered into force on 1 July 2014. Free trade negotiations between the two countries were officially launched in 2011. After nine rounds of negotiations, the two sides signed the agreement in July 2013. Details of the basic approach to mapping the 2020 annual targets for trade data are available in Bown (2020). Other hypotheses relate to the establishment of estimates for 15 different product categories, as the agreement provides only aggregate targets for the four sectors of manufacturing, agriculture, energy and services. The aim is to allocate product-level targets on the basis of the share of this product in all U.S. exports to China in 2017 of products covered by purchase obligations. See also the table below.
The Office of the U.S. Trade Representative (USTR) announced 37 exception lists that exclude certain Chinese imports from additional U.S. duties. However, the exemption rate is not high: 84% of exclusion applications were rejected by the USTR as of January 31, 2020. Due to the worsening of the COVID 19 pandemic in the United States, the USTR is now prioritizing the review of disp applications