As of 2021, the United States` current trade agreement with China is known as the “Phase One” trade deal. This agreement was reached between the two countries in January 2020 under the Trump administration and went into effect in February of that year.
The Phase One trade deal aimed to address a number of longstanding issues between the United States and China, including intellectual property theft, forced technology transfer, and market access barriers. Under the deal, China agreed to increase its purchases of American goods and services by $200 billion over two years, including over $50 billion in agricultural products.
In return, the United States agreed to reduce tariffs on some Chinese products and suspend planned ones, such as a 15% tariff on consumer goods like smartphones and laptops. The U.S. also agreed to revisit the possibility of removing some Chinese companies from its blacklist, which blocked them from buying U.S. products.
However, the Phase One trade deal has not been without controversy. Critics argue that it fails to address fundamental issues such as state subsidies for Chinese industries and the Chinese government`s control over its economy. Additionally, the COVID-19 pandemic has disrupted the promised purchases of American goods by China.
The Biden administration has yet to release a clear plan for its trade relations with China, but it has signaled a more cautious approach than the Trump administration. In the meantime, the Phase One trade deal remains in effect, albeit with some uncertainty about its long-term future.