Deputy U.S. Trade Representative (USTR) Sarah Bianchi Tuesday addressed the Washington International Trade Association (WITA) and echoed comments made Monday by USTR Katherine Tai relative to China regarding their failing short of meeting commitments under the Phase 1 trade deal. “You know, it is really clear that the Chinese haven’t met their commitment in Phase 1,” Bianchi said. “That’s something we’re trying to address.” She also said the discussions USTR is holding with China on the Phase 1 agreement are “difficult” and that the U.S. was “unflinchingly honest” in those talks, two terms Tai used Monday to describe the negotiations, and added it was “important” the two sides are having the discussions.
Bianchi also did not discuss or mention any potential Phase 2 negotiations with China on additional issues that were not covered under the Phase 1 deal. A spokesperson for the Chinese embassy in Washington told Reuters in an email that China has tried to implement the Phase 1 agreement “despite the impact of Covid-19, global recession and supply chain disruptions.” The spokesperson indicated the two sides are in “normal communication.”
U.S. trade data on goods and services due to be released Feb. 8 will provide December U.S. figures and give a picture of the full-year trade figures between the two countries. The Phase 1 agreement that outlined Chinese purchase commitments said verification would be based on official Chinese and official U.S. trade data. Consultations are called for under the deal if there are “conflicting assessments” of whether the purchase commitments have been made.
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