According to Bloomberg, citing an official document entitled 'Balanced Trade Relations', the Chinese side stated that if the U.S. measures do not meet China's requirements for equal treatment of investment, then China's open economic policy will not apply to U.S. investors.
The following is a summary of China's request:
1, lift the IC export 2. Stop levying a 25% additional tariff on Chinese products 3, Government procurement is open to Chinese products and services 4, Give Chinese companies equal treatment in the field of national security review 5, Adjust the ban on ZTE's exports 6. Stop using alternative country policies in anti-dumping countervailing investigations 7, No 301 investigations may be initiated against China in the future 8, Open up the electronic payment market to Chinese companies 9, Approved China International Finance Corporation to apply for a financial license
U.S. Trade Negotiation Requirements
In this document, the United States divides its needs into eight parts, ranging from reducing trade deficits to tariff barriers to implementation. The following is a summary of the United States' request to China at the beginning of the talks:
Reduce the trade deficit
The United States hopes that China will reduce its trade deficit between the two countries by at least 200 billion U.S. dollars from 2018 to 2020. It will reduce the Sino-U.S. trade surplus by 100 billion U.S. dollars within 12 months from 1 June 2018; 12 June 2019 Within the next month, China and the U.S. trade surplus will decrease by another 100 billion U.S. dollars. By the end of 2020, the trade surplus between China and the United States will be reduced by at least 200 billion U.S. dollars. China promises to increase imports from the United States within 12 months from June 1, 2018. Of the billion U.S. dollars, at least 75% are for the purchase of U.S. goods; China promises another 100 billion U.S. dollars for the 12 months from June 1, 2019, and at least 50% is for the purchase of U.S. goods.
Protecting U.S. Technology and Intellectual Property
Immediately stop providing market-distorting subsidies and other types of government support. These subsidies may help trigger excess production capacity in the industries targeted by China's industrial plan for 2025. Prior to January 1, 2019, specific policies related to technology transfer were abolished and Practice; Take direct and verifiable measures to ensure that China ceases to intrude into the US commercial network to steal intellectual property, trade secrets, and confidential business information held by US companies; Strengthen intellectual property protection and law enforcement; Cancellation before January 1, 2019; Regulations on the 'Regulations on the Administration of Import and Export of Technology' and 'Regulations on the Implementation of the Sino-Foreign Equity Joint Venture Law in the People's Republic of China'; Before July 1, 2018, the request for consultation on the tariff measures on certain commodities in China submitted to the WTO was withdrawn, and Do not take further action on this matter.
The document also called for China to take no action against or take retaliation against the United States.
Restrictions on investment in sensitive technologies
Do not oppose, challenge or otherwise retaliate against the United States for restricting China’s investment in sensitive technology departments or departments concerned with the national security of the United States.
U.S. investment in China
China does not distort trade through investment restrictions. Any investment restrictions or conditions imposed by China must be limited and transparent.
US investors in China must obtain fair, effective and non-discriminatory market access and treatment, including cancellation of foreign investment restrictions and foreign ownership/shareholding requirements. In order to advance these principles, China must publish before July 1, 2018. An improved negative list of foreign investment across the country. Within 90 days after China publishes this negative list, the United States will confirm the existing investment restrictions that deny market access to US investors after receiving a list of restrictions established by the United States. , China cancels all established investment restrictions in accordance with the timetable confirmed by both parties.
Tariff and non-tariff barriers
Before July 1, 2020, China reduced the tariffs on all products in non-key sectors to no higher than the corresponding tariffs in the United States; cancelled specific non-tariff barriers and recognized that the United States could impose import restrictions and tariffs on products in key sectors. Including the departments identified in the 'Made in China 2025' industrial plan.
U.S. Service and Service Providers
In order to achieve fair treatment of U.S. service and service providers, China has improved its market access in a specific way.
American agricultural products
In order to achieve fair treatment of US agricultural products, China has improved its market access in a specific way.
Implementation
China and the United States will meet once a quarter to review the progress made in achieving the agreed goals and reforms.
If the United States believes that China has failed to comply with any of the framework's commitments, the United States will have the possibility of imposing additional tariffs on Chinese products or restricting the supply of other services. It does not oppose, challenge or take any form of action to oppose the application of additional tariffs or restrictions by the United States. WTO complaints that the United States and the European Union list China as a non-market economy, and will no longer appeal in the future. Within 15 days after receiving a written notification of an embargo product that may be transshipped through one or more countries, Full details of the goods. The refusal to execute will trigger tariffs. If China does not honor its commitments, the United States will levy customs duties on imported products from China and confiscate counterfeit and pirated goods or impose customs duties to offset technical and intellectual property losses. Take any retaliatory measures.
Ministry of Commerce: Trade imbalance requires both parties to work together
According to the Ministry of Commerce's article, China and the United States are each other's largest trading partner countries. The two countries have achieved mutual complementarities through trade cooperation and gained extensive and huge economic benefits.
According to Chinese statistics, Sino-US trade volume increased from US$2.5 billion in 1979 to US$573.7 billion in 2017, an increase of 231 times. In 2017, Sino-U.S. bilateral trade accounted for 14.2% of China’s foreign trade. The United States exports to China. Provides a huge market demand. From 2008 to 2017, the proportion of exports to the United States to China’s total exports has been maintained at over 16%. China and the United States have strong industrial complementarities. The United States has become an important overseas market for many Chinese products. China to the United States Exports, electrical appliances and audio equipment, machinery and parts, furniture and parts, toys and games supplies and parts, footwear are the main product categories. A considerable part of China's exports to the United States is processing trade.
Under this mode of trade, Chinese companies are in the low end of the value chain such as processing and assembly. U.S. companies have mastered high value-added links such as product design, core parts manufacturing, transportation, storage, and marketing, and have obtained most of their profits.
According to U.S. statistics, China is the largest export market in the United States except for North America, and it is also one of the fastest growing major export markets in the United States. In 2017, U.S. exports to China increased by 578 percent over 2001, much higher than the U.S. global exports during the same period. The growth rate of 112%. China has become an important overseas market for many products in the United States. Among them, bulk agricultural products and high-tech products are the most typical. Currently, China is the largest export market for US aircraft, soybeans, automobiles, integrated circuits, and cotton. The second largest export market. The United States exports 62% of soybeans, 17% of cars, 15% of integrated circuits, 14% of cotton sold in China, and about 1/4 of the passenger aircraft produced by Boeing is sold to China.
There is an imbalance in bilateral trade between China and the United States. This issue needs to be viewed historically and comprehensively. Ultimately, bilateral trade imbalances are determined by the economic structure, industrial competitiveness, and international division of labor of the two parties, and are the result of market operations. China never The deliberate pursuit of a trade surplus. The solution to the trade imbalance between China and the US requires both parties to work together.