U.S. President Bill Clinton signed the 2000 U.S. China Relations Act in October, which gives Beijing a long-term normal trade relationship with the United States and paves the way for China`s accession to the World Trade Organization in 2001. Between 1980 and 2004, trade between the United States and China increased from $5 billion to $231 billion. In 2006, China surpassed Mexico as the second largest trading partner of the United States after Canada. There is no reason why China has not met the Phase 1 targets. At first, the covid 19 pandemic beat the Chinese economy on its heels, but its trade recovered faster than most others. And some U.S. exports to China – including medical care, pork and semiconductors – have even accelerated in 2020.
From the beginning, an additional $200 billion in sales to China were a worrying goal. Nearly 30% of U.S. merchandise exports to China are not even covered by the Phase One agreement. And for those who covered the agreement, a review of 15 product groups shows that their sales to China have been influenced by various factors, including plane crashes, epidemics of outbreaks, export controls, World Trade Organization (WTO) legal decisions, the lingering effects of trade war tariffs and the pandemic. Domestic coverage of the trade war is censored in China. While news agencies are allowed to cover the conflict, their reports are subject to restrictions; The South China Morning Post reported that Chinese media employees were ordered not to “overestimate” the trade war, while a New York Times article reported that state news agencies had tried to promote the official line, with the authorities limiting the use of the term “trade war.”  Social media posts about the conflict are also subject to censorship.   But the agreement has a lot of criticism on both sides that Trump`s tactics were economically harmful and that the agreement leaves many important economic issues unresolved. 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 monetary agreement contains Commitments from China to abandon competitive currency devaluations and not to steer its exchange rate towards a trade advantage – a language that China has accepted for years as part of its commitments to the Group of 20 major economies. Since the 1980s, Trump has supported tariffs to reduce the U.S. trade deficit and encourage domestic production, and said the country was “ripped off” by its trading partners; The imposition of tariffs has become an important part of his presidential campaign.  A context of the Council of Foreign Relations stated that while many economists and trade experts did not believe that trade deficits were hurting the economy, others felt that persistent trade deficits were often a problem and that there was a substantial debate about the size of the foreign government trade deficit and the policies to be adopted to reduce it.
 Almost all economists who responded to the Associated Press and Reuters polls said that Trump`s tariffs would do more harm than good to the U.S. economy, and some economists have argued for alternative ways for the United States to deal with its trade deficit with China.      In an article in Forbes of April 2018, Harry G.