Chinese Ag Purchases Lag Implied Phase One Levels

WASHINGTON, DC – According to the Peterson Institute for International Economics, China’s total imports of covered products from the United States were $100 billion, compared with the target of $173 billion.

The target, established in 2020 through a Phase One Trade agreement between the two countries, was signed in an effort to bring a two-year trade dispute to an end.

As of January 1, 2021, U.S. exports to China of covered products were $94 billion, compared with a target of $159 billion.

In the first year of the agreement, China’s purchases of all covered products only reached 59 percent of their target.

Agriculture was a key component for the Trump Administration as China committed to an additional $12.5 billion of purchases in 2020 above 2017 levels, implying an annual target of $36.6 billion.

Through December 2020 however, China’s imports of covered agricultural products were $23.5 billion.

In the first year of the agreement, China’s purchases of covered agricultural products only reached 82 percent of the intended target.

The Institute fails to mention the outbreak of COVID-19 and the corresponding shutdown of the global economy.

Trade officials from both countries expressed concern about reaching the levels of purchases agreed upon until the world economy could find stable footing while dealing with the pandemic.
(SOURCE: All Ag News)