The centerpiece of Phase One of a new trade deal with China is the pledge China made to purchase at least $200 billion more of American products over the next two years. In addition, it allegedly puts in place enforcement mechanisms to keep China from stealing American companies’ trade secrets and advanced technology.
Skeptics scouring the 94-page agreement aren’t finding much to cheer about.
First, from a practical point of view, the near doubling of Chinese purchases in the four areas outlined in Phase One — farm products, energy purchases, manufacturing goods and services — isn’t likely to happen. As the Wall Street Journal pointed out: “To meet the targets, exports to China would have to rise to around $262 billion in 2020 and $309 billion in 2021.… That amounts to an increase of around 60% … an unprecedented jump.”
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