The trade war between China and the United States has weighed on the economies of both countries. Tensions appear to have led to a slowdown in U.S. manufacturing. Chinese exports to the United States have collapsed. Economists at financial firm Morgan Stanley expressed concern about the end of the trade war, but warned in June 2019 that this could lead to a recession. [321] Minxin Pei, a Scholar of Chinese politics at Claremont McKenna California College, argued that Xi`s ambitions for China`s rebirth as a world power had been unveiled as hollow by the continuation of the trade conflict. [259] Sales of cars, trucks and parts in the United States also fell to only 33% of the previous target. Before the trade war, China was the second largest export market for U.S. vehicles. In July 2018, China returned the favor against Trump`s tariffs with a 25% tariff on U.S. cars.

U.S. exports then fell by more than a third due to the relocation of production for Chinese consumers to other sites and the non-recovery of U.S. exports since then. Tesla, for example, announced in late 2018 that it would accelerate construction of a new plant in Shanghai and relocate U.S. production to Chinese consumers. The company stressed that Trump`s tariffs on auto parts and China`s retaliatory measures against finished cars had not made U.S. exports to China competitive. In response to this trade war policy, BMW has relocated some of its production from South Carolina to China.5 The pact aims to open Up Chinese markets to more U.S. companies, increase agricultural and energy exports, and strengthen protection of U.S. technology and trade secrets. China has committed to purchase an additional $200 billion in U.S.

goods and services by 2021, and is expected to ease some of its tariffs on U.S. products. The mayors of Davenport and Saint-Gabriel, who represented cities heavily dependent on agriculture, expressed their fear that the trade war would have on their cities. [286] At the same time, China imported more pork to cope with local bottlenecks caused by the epidemic, leading the United States to exceed its 2020 target (see Chart 3). In September, Chinese pork imports from the rest of the world also increased by more than 400% compared to 2017. And in one of the few parts of the first phase agreement, which includes political commitments (Chapter 3), China has agreed to remove technical barriers that had slowed pork imports. These are the issues that would have triggered the trade war. Among the most important issues discussed in the negotiations with China was the question of how to enforce an agreement. After observing the agreements with China that they did not keep their promises, many U.S. experts and leaders were skeptical that the Trump administration could lead China to meet its commitments. In his January 2020 trade deal with China, President Donald Trump argued that his trade war with China was a success.

In its self-proclaimed «historic» agreement, China committed to purchase other U.S. goods and services in 2020 and 2021. Trump even boasted that the deal «could be closer to $300 billion once it`s done.» In August 2018, Hong Kong-minded academic Willy Lam said the trade war had raised all previous concerns from various Western countries about China and undermined the authority of Chinese President Xi Jinping. [259] [260] Zhang Baohui, a professor of political science at Lingnan University in Hong Kong, also said that the trade war had been effective in challenging the myth of Chinese invincibility by saying that tariffs «really hurt China at a very bad time when the economy has serious problems.» [259] Nearly 90% of