China Purchase Agreement

Posted on Tuesday, September 14th, 2021 at 2:40 pm

As of October 2020, China`s total imports of covered products from the United States have stood at $75.5 billion since the beginning of the year, compared to a year-to-date relative target of $137.3 billion. During the same period, U.S. exports of covered goods to China amounted to $US 70.3 billion, compared with an annual target of $US 125.4 billion. In the first ten months of 2020, Chinese purchases of all covered products were only 56% (US exports) and 55% (Chinese imports) of their annual targets. Under the agreement, China has committed to buy from the United States, by the end of 2020, no less than $63.9 billion in additional covered goods compared to these 2017 subvalues. The definition of the 2017 baseline, using Chinese import statistics, implies a purchase target of $173.1 billion in 2020 (in red in field a). The definition of the 2017 baseline based on US export statistics implies a target of $159.0 billion in 2020 (blue in box a). For both U.S. export data and Chinese import data, the Phase 1 targets for 2020 for additional trade (in addition to the 2017 base year) are $12.5 billion (agriculture), $32.9 billion (industrial goods) and $18.5 billion (energy).

These objectives are set out in Annex 6.1 to the Agreement. For the agricultural products covered, China has committed to make additional purchases of $12.5 billion in 2020 above the 2017 level, implying an annual target of $36.6 billion (Chinese imports, panel b) and $33.4 billion (US exports, panel c). In October 2020, China`s imports of all uncovered products from the United States were $28.4 billion, down 25% from the same period in 2017. U.S. exports of all uncovered products to China were US$22.0 billion as of September, 13% less than during the same period in 2017 (October data for non-covered products will be available on December 7, 2020.) The Economic and Trade Agreement between the United States of America and the People`s Republic of China entered into force on 14 February 2020. China has agreed to increase the purchase of some U.S. goods and services by $US 200 billion compared to 2020 and 2021 compared to 2017. This PIIE chart tracks China`s monthly purchases of U.S. goods covered by the agreement, based on data from both China Customs (Chinese imports) and the U.S.

Census Office (U.S. exports). . . .

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