The commitment was made in what’s known as the Phase One deal, in which Beijing promised to purchase $200 billion more in American exports than it had in 2017, before a US-China trade war began. Trump and Chinese President Xi Jinping both stopped escalating tariffs after the deal was signed.
The deal required China to meet its purchase commitments by the end of 2021. While China was never on track to meet the target number, a new report from the Peterson Institute for International Economics gives the first complete picture of how much was purchased over the two-year period.
Ultimately, China bought only 57% of the US exports it had committed to purchase under the agreement, according to the report, which analyzed new trade data from the Department of Commerce.
The Covid-19 pandemic slowed trade around the globe just weeks after the deal was signed, making it even harder for Beijing to meet its purchase commitment.
Biden leaves tariffs in place
The Phase One agreement didn’t include any repercussions for China if it missed its goals.
“I’d like to be able to be in a position where I can say they’re meeting the commitments, or more of their commitments, and be able to lift some of it. But we’re not there yet,” Biden said at the time.
Members of the Office of the US Trade Representative have been talking to their Chinese counterparts about the Phase One commitments since the fall.
“We have engaged the PRC (People’s Republic of China) on its shortfalls for months, but have not seen real signs towards making good on the purchase commitments and our patience is wearing thin,” said Adam Hodge, spokesperson for the US trade representative, in a statement sent to CNN.
“Regardless of how these negotiations conclude, the fact remains that the Phase One agreement did not address the core problems with the PRC’s state-led economy,” he added.
Trump’s tariffs were imposed on $350 billion in Chinese goods, including baseball hats, luggage, bicycles, TVs and sneakers.
The tariffs make it more expensive for American businesses to import these goods from China, many of which are not manufactured in the United States at a pace that meets the demand. They also hurt manufacturers who need to import certain component parts.
Scott Paul, president of the Alliance for American Manufacturing, said China’s failure to meet the goals is a clear sign that the US must pivot its strategy.
“Anyone who has followed US-China trade closely over the past 20 years can tell you that until the fundamental issues are addressed — things like China’s state-owned enterprises, massive government subsidies, intellectual property theft, lax labor and environmental laws — the massive trade gap will remain,” Paul said in a statement.
The bill passed the House last week and lawmakers must now reconcile the differences between the House and Senate versions of the legislation before it’s sent to Biden’s desk to be signed into law.
This story has been updated with additional details.
CNN’s Kate Sullivan contributed to this report.
