China Misses Mark on Fulfilling Phase 1 Trade Agreement

A recent encouraging rally of Chinese imports was a bright spot in what has otherwise been a flop in the U.S.-China Phase 1 trade deal. December export data shows a $45 billion increase in the 2021 trade deficit and a major two-year shortfall in Beijing’s commitment to purchase more U.S. agricultural goods. The U.S. Census Bureau said Tuesday that the trade deficit with China rose by 14.5%, the largest amount since 2018 when the trade war began.

A deputy U.S. trade representative said last week that it is clear China hasn’t met their commitment in Phase 1 and that the Biden administration is working with Chinese officials to address the issue. U.S. officials have also commented they’re losing patience over China’s failure to close the shortfall in its purchase commitments.

Read more on the U.S.-China trade deficit here.