## **US-China Trade Tensions on the Rise: Could Compliance Review Lead to Economic War?**
As the world waits with bated breath, U.S. officials are gearing up to reveal their assessment of China’s adherence to the landmark **Phase One trade deal**, a pact that was hailed as a game-changer when it was inked five years ago under the Trump administration. This high-stakes review could reignite tensions between the two global giants, potentially leading to significant economic repercussions.
### Background on the Phase One Deal
The **Phase One trade agreement**, signed on January 15, 2020, marked a significant moment in U.S.-China trade relations. It committed China to purchasing an additional **$200 billion worth of U.S. goods**, aimed at rebalancing the trade deficit. However, **official data suggests China has fallen short of this target**, primarily due to the global economic disruptions caused by the pandemic.
### U.S. Review and Potential Consequences
U.S. officials have been conducting a **two-month investigation** into China’s compliance. This assessment, due by Tuesday, will not only evaluate China’s purchasing commitments but also address other critical bilateral trade issues. A key consideration is whether the U.S. should revoke China’s **Permanent Normal Trade Relations (PNTR) status**. Economists warn that such a move could be equivalent to imposing a **30% tariff**, stoking fears of a severe trade war.
### The America First Trade Policy Review
President Trump’s latest **America First Trade Policy** review, initiated on the first day of his second term, is being closely watched as a potential precursor to negotiations about the future of U.S.-China trade. The U.S.-China trade relationship, valued at **$690 billion last year**, hangs in the balance. It remains unclear whether U.S. officials will make their findings public or present them privately to the White House, with implications for future tariff and policy decisions.
### Expert Insight: Tariffs as a Threat
According to He Weiwen, a former commercial counselor at Chinese diplomatic missions in New York and San Francisco, Trump is likely to use the review results as leverage to impose additional tariffs on China. “Trump will likely wield the review like holding an ax in his hand,” He said. Furthermore, should the U.S. revoke China’s PNTR status, it “will be enough to kill trade.”
As U.S.-China relations reach a critical juncture, the world waits to see how this high-stakes game of economic diplomacy plays out.
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– **U.S.-China Trade Relations**
– **Phase One Trade Deal**
– **America First Trade Policy**
– **Permanent Normal Trade Relations (PNTR)**
– **Trade War Tensions**
– **Trade Tariffs**
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– **China’s Compliance Review**
### Meta Description:
The U.S. is set to deliver its verdict on China’s compliance with the Phase One trade deal, heightening tensions in a trade relationship worth $690 billion. Will this review lead to tariffs and a trade war?
### Page Title:
US-China Trade Tensions: Compliance Review Could Spark Economic War
### Header Tags:
– **## Introduction to the Phase One Trade Deal**
– **## The U.S. Compliance Review and Its Implications**
– **## Expert Insights: The Role of Tariffs in Trade Negotiations**