China Prepares Card to Restore Trade Agreement Signed with US in 2020

Foreign media reported that China is preparing to restore the Phase One trade agreement worth approximately 290 trillion won, which was signed in 2020 to prevent U.S. measures such as tariff hikes under the Donald Trump administration aimed at containing China.

On the 2nd (local time), The Wall Street Journal (WSJ), citing officials familiar with the China-U.S. relationship, said that China will focus on restoring the 'Phase One trade agreement' signed in early 2020 but not implemented, as one of its countermeasures in trade negotiations with the United States.

In January 2020, during the Trump administration, the U.S. and China signed the Phase One trade agreement under the condition that the U.S. would withdraw additional tariffs on Chinese imports, and China would purchase an additional $200 billion (approximately 293 trillion won) worth of goods and services from the U.S. between 2020 and 2021.

However, due to the COVID-19 pandemic, according to the Washington think tank Peterson Institute for International Economics (PIIE), China achieved only 58% of its purchase target.

President Trump, shortly after his inauguration on the 20th of last month, ordered an evaluation of whether China was fulfilling the Phase One trade agreement and recommended measures such as imposing tariffs.

Officials said China is expected to propose additional purchases of U.S. agricultural products, energy, and manufactured goods. However, China is also anticipated to argue that the U.S. should lift export restrictions on semiconductors and technology to China.

It is also reported that China's negotiation plans with the U.S. include refraining from devaluing the yuan.

Additionally, regarding the TikTok issue involving its domestic video-sharing service, it is known that the Chinese government does not plan to directly intervene in the sale of TikTok. It is predicted that investors of TikTok's parent company, ByteDance, will negotiate with U.S. bidders interested in TikTok shares.

This content was produced with the assistance of AI translation services.