Under the agreement, China will purchase at least $200 billion in additional U.S. goods and services over two years, including $32 billion in additional imports of U.S. agricultural products. Congratulations to the authors who highlighted so many aspects of the Phase One trade agreement signed by the United States and China. The very title of this agreement indicates that there will be more such agreements to further eliminate trade disputes between the two nations. No deal can be perfect and cannot be expected forever. The 18-language chapter, which represents one-fifth of the comprehensive agreement, imposes various obligations on trade secrecy, drug-related intellectual property, geographical indications, trademarks, patents, e-commerce infringement and enforcement of pirated and counterfeit goods. The theft of IP and trade secrets has long been a concern of American companies and one of the main triggers of the Trump administration`s customs escalation. The agreement contains provisions for the protection of confidential information that are considered trade secrets – U.S. companies feel that this is not sufficiently protected by Chinese law. Considerable progress has also been made in protecting drug-related intellectual property.
The agreement also calls on China to present an “action plan to strengthen intellectual property protection” within 30 days of the agreement`s entry into force. There were much more detailed analyses in Chinese on the benefits of the agreements (with their many errors) –I`m surprised, that the Chinese co-author did not refer to anything, or look at any of the other articles by people with expertise, such as Mark Cohen`s chinaipr.com/2020/01/21/the-phase-1-ip-agreement-its-fans-and-discontents/ The 96-day agreement contains eight chapters on intellectual property protection, technology transfer, food and agricultural trade, financial services, macroeconomic policy and currency, trade expansion, dispute resolution and final rules. The agreement focuses primarily on certain Chinese behaviors, which have long been important to the United States and the U.S. company, and aims to raise the standards of behavior followed (at least in theory) by the United States. One of the most striking features of this agreement is the commitments and structural changes that China is prepared to implement: the phrase “China must” appears 97 times in the text, while the phrase “[the United States] appears only five times, two of which refer to promises made by China and the United States. In some areas,. B such as drug rights and patent rights in the broadest sense, China`s commitments exceed the U.S. commitments that the United States has secured with partners in other trade agreements such as the U.S.-Mexico-Canada Free Trade Agreement (“USMCA”). Such a sharp increase in U.S.
imports will allow China to reduce its imports from other countries to offset its overall trade balance. Third, the underlying competition and the search for power between the United States and China in defining new international trade and economic rules are not settled by the agreement (and may not be resolved for decades). Above all, but not surprisingly, the agreement does not address new issues such as privacy and data regulation related to digital commerce or environmental protection and climate change. Negotiations between the United States and China under the current U.S. administration to reduce the U.S. trade deficit can be traced as early as April 2017. When the trade war between the United States and China intensified due to securitized tariffs after the release of Special Report 301, the United States.