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1 1 (January 17, 2020)

handle is hein.crs/govbhyv0001 and id is 1 raw text is: Conqrcssioa flasearch Service U.S. Signs Phase One Trade Deal with China Updated January 17, 2020 President Trump on January 15, 2020, signed a phase one trade agreement with the Chinese government that is intended to resolve some of the trade and investment issues the Administration raised in March 2018, pursuant to Section 301 of the U.S. Trade Act of 1974. Including appendices, the agreement is 96 pages and covers some aspects of intellectual property (IP) (Chapter 1), technology transfer (Chapter 2), agriculture (Chapter 3), financial services (Chapter 4), macroeconomic policies and exchange rates (Chapter 5), trade purchases (Chapter 6), and dispute resolution (Chapter 7). Approximately one-fourth of the agreement addresses IP commitments. Discussion of technology transfer is confined to two pages. Some Members assess the deal to be a first step in a longer effort to address U.S. trade concerns with China. Many observers call it a short-term truce, noting it falls short of the Administration's goal of a comprehensive settlement. The most significant potential gains for the United States appear to be in agricultural market access-an area that is important to the U.S. economy but falls outside the scope of the 301 investigation-suggesting to some that China may have directed talks away from sensitive IP and technology transfer issues by offering other commitments of interest to the United States. Chinese tariffs on U.S. agricultural products, however, remain largely in place, potentially mitigating the effects. China's potential use of selective exemptions-rather than across the board tariff reductions-may give it leverage in future potential talks. Section 301 action emerged from a building of frustration in the U.S. government and business community over Beijing's perceived unwillingness to acknowledge and address key commercial concerns. In its March 2018 Report on the findings of its Section 301 investigation, the Administration identified four concerns: (1) forced technology transfer, (2) cyber-enabled theft of U.S. IP and trade secrets, (3) discriminatory and nonmarket licensing practices, and (4) state-funded strategic acquisition of U.S. assets. As a result, the United States imposed four rounds of tariffs on Chinese goods. China responded with four rounds of counter tariffs. Negotiations also sought to address President Trump's concerns about the trade balance and incorporate Chinese offers in unrelated areas, such as financial services. Overview of Key Issues Tariffs. The United States agreedl to delay tariffs schedulIed to take effect Decemnbe r IS, 2019, th at woulId have affected approximately $160 billion worth of imports from China, particularly consumer electronics. For U.S. tariffs enacted on September 1, 2019, the United States, as of February 4, 2020, will cut the tariff rate from 15% to 7.5%. The remaining U.S. tariffs enacted since March 2018 will remain in effect According to a December IS aby China's State Council Congressional Research Service https://crsreports.congress.gov IN11208 CRS NStGHT Prepai-ed for ferbei-s and Comm ittees o. e Co -q . . . . . . . . . . ...-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

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