Donald Trump’s government launched an investigation into China’s possible non-compliance with the terms of a trade agreement signed in 2020, during the Republican’s first term, less than a week before the magnate and his Chinese counterpart, Xi Jinping, hold a crucial meeting focused on trade.
As announced this Friday by the United States Trade Representative (USTR), Jamieson Greer, the investigations into the implementation by China of the so-called ‘Phase One Agreement’ will determine whether or not there was a breach of the commitments made by China.
If there is a violation, the USTR will determine what measures “should be taken in response,” according to the statement published by the office.
Although these types of investigations typically take months to complete, data published in 2022 showed that China fell far short of the commitments it made to buy American aircraft, soybeans or energy.
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An early adoption of punishments could lead to more US tariffs on China and increased friction after weeks of tense exchanges between the world’s two largest economies, and could be an attempt by Washington to strengthen its position just before Trump and Xi are scheduled to meet in South Korea next week.
It is expected that from the meeting, the first that both leaders have held in person since 2019, an agreement may emerge to reduce tariffs and trade restrictions between the two largest economies in the world.
Trump warned, after Beijing recently announced global restrictions on the export of rare earths (essential for American technology giants), that if there was no agreement on November 1, tariffs on Chinese goods would rise from the current 30% to 157%.
With information from EFE.
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