U.S.-China Trade War Truce: What's Happened and What's Next
U.S.-China Trade War Truce: What's Happened and What's Next
(Bloomberg) -- The trade dispute between the U.S. and China is on hold, at least for the next three months, with both sides agreeing to discuss their issues and China saying it will increase imports from the U.S.
The increase of tariffs on $200 billion in Chinese goods to 25 percent is off the table, for now, as the two sides begin to discuss the hard questions. The negotiations will cover "structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture," according to a White House statement.
Here’s the a timeline of what’s coming and the major developments this year, in reverse chronological order.
Date | Joint action | U.S. action | Chinese action |
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Early March | Deadline for negotiations | ||
12/1/2018 | Presidents Donald Trump and Xi Jinping agreed to a truce and talks, freezing tariffs at the current level for 90 days. | U.S. postpones increase on tariffs on $200 billion of imports, which was planned for Jan. 1. | China agreed to increase imports, according to Foreign Minister Wang Yi. According to White House Spokesman Sarah Huckabee Sanders, China also agreed to: |
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11/28/2018 | U.S. Trade Representative announces it will look to equalize car tariffs with China, calling the Chinese policy "especially egregious." | ||
11/26/2018 | Trump threatens to increase tariffs, possibly to cover all U.S. imports. | ||
11/23/2018 | U.S. government has been urging its allies not to use telecommunications equipment from China’s Huawei Technologies Co., according to the Wall Street Journal. | ||
11/20/2018 | The World Trade Organization agreed to launch investigation into China’s intellectual property policy and U.S. metals tariffs. | ||
11/20/2018 | USTR accused China of continuing a state-backed campaign of intellectual property and technology theft in an update on its Section 301 report on China’s protection of IP. | ||
11/19/2018 | U.S. pushed ahead with plan to tighten restrictions on technology exports. | ||
11/18/2018 | APEC forum ended without a communique after dispute over statement on trade. Xi and U.S. Vice President Mike Pence traded barbs at the event. | ||
11/16/2018 | Trump said the U.S. may not need to impose more tariffs, as China wants to make a deal and had sent a list of responses to U.S. demands. | ||
11/15/2018 | Trump said he wanted any deal to include soybeans. | ||
11/15/2018 | Commerce Secretary Wilbur Ross said that at best, Trump and Xi will likely agree to a framework for further talks. U.S. Trade Representative Robert Lighthizer denied reports that further tariffs are on hold. | ||
11/13/2018 | China complained to the WTO that the U.S. ban on companies doing business with a Chinese chipmaker Fujian Jinhua violates WTO rules. | ||
11/13/2018 | The two nations are talking at "all levels," according to President Trump’s economic aide Larry Kudlow. | ||
11/12/2018 | U.S. administration plans to use export controls, indictments and other tools to counter Chinese theft of intellectual property, according to the Wall Street Journal. | ||
11/09/2018 | Treasury Secretary Steven Mnuchin and Vice Premier Liu He spoke. | White House adviser Peter Navarro warned "Wall Street" to stay out of negotiations with China. He’s later criticized for these comments by Kudlow. | |
11/6/2018 | China ready to discuss a trade solution with the U.S., but it won’t again be “bullied and oppressed” by foreign powers, according to Vice President Wang Qishan. | ||
11/02/2018 | Trump said to have asked cabinet to draft possible trade deal with China. | ||
11/01/2018 | Trump and Xi spoke in a phonecall, and Trump later says he thinks a deal will be reached. | ||
11/01/2018 | U.S. indicts a state-owned chipmaker Fujian Jinhua and a Taiwanese firm for allegedly conspiring to steal trade secrets from U.S. chipmaker Micron Technology Inc. | ||
11/01/2018 | U.S. announced a new effort against Chinese economic espionage. | ||
10/30/2018 | U.S. charged 10 people, including two people it claimed were Chinese intelligence officers, as part of an alleged conspiracy to steal U.S. jet engine technology. | ||
10/29/2018 | U.S. announced restrictions on exports to chipmaker Fujian Jinhua. | ||
10/29/2018 | Trump predicted a "great deal" with Xi, and also said China isn’t ready. | ||
10/29/2018 | U.S. said to be planning more tariffs on China if meeting with Xi fails. | ||
10/25/2018 | The U.S. won’t resume talks with China without a firm proposal on tech, the WSJ reports. | ||
10/23/2018 | U.S. announced that Trump will meet with Xi at G-20 meeting. | ||
10/21/2018 | Kudlow said China refusing to engage on trade issues. | ||
10/18/2018 | China, the EU and others asked the WTO to investigate U.S. tariffs on metals imports. | ||
10/18/2018 | U.S. requested that a WTO dispute resolution panel get involved in a clash over retaliation against U.S. metals tariffs, Reuters reported. | ||
10/17/2018 | U.S. didn’t name China as a currency manipulator. | ||
10/17/2018 | U.S. announced it wants to withdraw from an international postal treaty which it claims unfairly benefits China. | ||
10/17/2018 | U.S.-China relations in "something of a hiatus," according to Commerce Secretary Wilbur Ross. | ||
10/14/2018 | Trump said he "might" impose a third round of tariffs on China. | ||
10/14/2017 | China’s Ambassador to the U.S. Cui Tiankai said the nation was forced to respond to a U.S. initiated trade war, and will defend its national interest. | ||
10/12/2018 | Chinese state media pushed back at accusations from Vice President Pence, and calls for U.S. to work to find a solution. | ||
10/10/2018 | U.S. extradited an alleged Chinese intelligence officer from Belgium on charges of trying to steal trade secrets from a U.S. aviation company. | ||
10/08/2018 | Secretary of State Mike Pompeo publicly rebuked by Chinese Foreign Minister Wang Yi in Beijing. | ||
10/05/2018 | China said the Pence speech makes "unwarranted accusations." | ||
10/4/2018 | U.S. Vice President Pence made a speech attacking China. | ||
10/03/2018 | U.S. administration reviewing how it can stop exports that could help China surveil and intern minority Muslims, Reuters reports. | ||
9/30/2018 | A Chinese official called allegations of forced tech transfers a "misunderstanding." | ||
9/26/2018 | Trump accused China of interfering in U.S. elections, and said his friendship with Xi might be over. | ||
9/26/2018 | China announced it will cut some import tariffs from Nov. 1. Measure applies to all nations, not just U.S. | ||
9/25/2018 | Trump said China’s trade and economic abuses "cannot be tolerated." | ||
9/25/2018 | China’s commerce ministry said it can’t negotiate with a knife to its throat, and it’s up to the U.S. when to resume talks. | ||
9/24/2018 | China issued a White Paper putting its case on the trade dispute. | ||
9/24/2018 | U.S. imposed tariffs. | China also imposed tariffs. | |
9/22/2018 | China calls off planned talks. | ||
9/20/2018 | U.S. imposed sanctions on Chinese defense equipment purchasing department. | ||
9/18/2018 | China announced retaliation on $60 billion of U.S. goods to become effective simultaneously with the U.S. duties. | ||
9/17/2018 | U.S. announced 10 percent tariff on $200 billion of Chinese exports effective Sept. 24 until the end of 2018, to rise to 25 percent afterward. | ||
9/6/2018 | End of comment period for tariffs on $200 billion of Chinese exports. | ||
8/23/2018 | Tariffs on $16 billion of Chinese imports began. | Chinese retaliation of tariffs on $16 billion of U.S. exports began. | |
8/03/2018 | China announced a list of $60 billion worth of U.S. imports it will apply tariffs on should the Trump administration follow through with higher tariffs on $200 billion of Chinese goods. | ||
8/02/2018 | U.S. Trade Representative confirmed that President Trump was considering increasing proposed tariff on $200 billion of Chinese imports to 25 percent from 10 percent. | ||
7/31/2018 | China, US. reported to be trying to restart trade talks. | ||
7/26/2018 | Qualcomm Inc. decided to scrap a $44 billion takeover of NXP Semiconductors NV, because China didn’t sign off as time expired. | ||
7/20/2018 | Trump said he’s "ready to go" with tariffs on $500 billion of Chinese imports. | ||
7/11/2018 | The USTR released a list of $200 billion of Chinese goods it plans to impose an extra 10 percent tariffs on. | ||
7/6/2018 | Tariffs on $34 billion of imports began. | Tariffs on $34 billion of imports began. | |
7/6/2018 | ZTE Corp. received limited authorization to resume business. | ||
7/3/2018 | U.S. computer chip company Micron Technology Inc. ordered to halt sales in China. | ||
6/27/2018 | Trump agreed to less aggressive option to limit Chinese investment in the U.S. | ||
6/21/2018 | Xi said China will hit back if struck, according to the Wall Street Journal, and criticized Pompeo, who had called Chinese claims of economic openness “a joke.” | ||
6/20/2018 | White House released report accusing China of threatening U.S. interests. | ||
6/19/2018 | Trump said U.S. looking to put tariffs on another $200 billion of Chinese exports, with another $200 billion after that if China retaliates. | ||
6/18/2018 | Pompeo called Chinese claims of economic openness “a joke.” | ||
6/15/2018 | U.S. announced tariffs on $50 billion of imports from China, with Trump threatening more if China retaliates. | China responds in kind. | |
6/15/2018 | Qualcomm Inc.’s takeover of NXP Semiconductors NV is said to be approved by Chinese regulators, although a later report contradicts this. | ||
6/15/2018 | Pompeo met Xi, discussing trade and security. | ||
6/7/2018 | Ross announced deal allowing ZTE to get back into business. | ||
6/6/2018 | China said to offer to buy $25 billion more of U.S. goods in 2018. | ||
6/3/2018 | China said previous offers and deals are off if tariffs imposed. | ||
6/2-4/2018 | Ross and Chinese Vice Premier Liu He met in Beijing for talks. | ||
5/30/2018 | China announced cuts to tariffs on some consumer goods, to start July 1. | ||
5/29/2018 | U.S. announced plan to limit some visas for Chinese citizens to protect intellectual property. | ||
5/29/2018 | U.S. announced that it’s moving ahead with tariffs on $50 billion of imports and a plan to curb investment in sensitive technology. | ||
5/29/2018 | China said to be considering buying more U.S. coal to narrow trade deficit. | ||
5/28/2018 | At the WTO, U.S. accused China of imposing laws that result in the theft of U.S. tech and IP. | ||
5/28/2018 | China ready to approve Qualcomm/NXP deal if it gets assurances that the U.S. will lift ban on ZTE Corp. | ||
5/28/2018 | U.S. said to be pressing China to sign long-term import contracts. | ||
5/25/2018 | U.S. announced a $1.3 billion fine and other punishments for ZTE, but will allow company to resume purchasing from American suppliers. | ||
5/23/2018 | Trump backed away from the previous day’s deal, saying U.S. will "probably have to use a different structure." | ||
5/22/2018 | China will cut import duties on cars to 15% from 25%. | ||
5/22/2018 | Two nations agreed on the "broad outline" of a settlement for ZTE dispute, the WSJ reported. | China offered to remove tariffs on U.S. farm products as part of the deal. | |
5/21/2018 | Trump tweeted that China will buy "massive amounts of additional farm/agricultural products." | ||
5/20/2018 | Both nations reached an agreement and issued a joint statement. | The U.S. agreed to hold off on tariffs. | China offered to significantly increase purchases of U.S. goods. |
5/18/2018 | China ended anti-dumping and anti-subsidy investigation into sorghum. | ||
5/17/2018 | Talks began in Washington. | ||
5/14/2018 | China is said to restart review of Qualcomm’s proposed NXP deal. | ||
5/13/2018 | Trump tweeted that he’s working with Xi to get ZTE "back into business." | ||
5/10/2018 | ZTE ceased major operations in the U.S. | ||
5/3-4/2018 | Trade talks in Beijing. No agreement reached, and no statement released. | U.S. demanded a $200 billion cut in trade deficit. | China protested over ZTE case, demands end of Section 301 investigation. |
4/28/2018 | China objected to being on U.S. intellectual property watch list. | ||
4/27/2018 | U.S. kept China on IP priority watch list of nations. | ||
4/26/2018 | Reported that China may cut car import tariffs by half. | ||
4/26/2018 | Reported that U.S. looking into China’s Huawei Technologies Co. for possible violation of sanctions against Iran. | ||
4/17/2018 | China announced it will collect anti-dumping tariffs on sorghum imports from the U.S., a trade worth about $1 billion in 2017. | ||
4/16/2018 | U.S. penalized China’s ZTE for violating a previous agreement punishing it for doing business with Iran and North Korea. The company is banned from buying U.S. technology for seven years. | ||
4/10/2018 | Xi promised to open up various sectors including autos and finance. | ||
4/5/2018 | Trump issued statement that says “in light of China’s unfair retaliation” for his initial tariffs, his administration will consider an addition $100 billion in tariffs. | ||
4/5/2018 | China complained to the WTO about U.S. tariffs on steel and aluminum imports. | ||
4/4/2018 | U.S. responded to China’s WTO complaint on the section 301 tariffs, calling it baseless. | ||
4/4/2018 | China complained to WTO about the section 301 tariff action by the U.S. | ||
4/4/2018 | China said it will levy an additional 25 percent tariff on imports of 106 U.S. products including soybeans, automobiles, chemicals and aircraft, in response to proposed American duties on its high-tech goods. | ||
4/3/2018 | The U.S. released a list dominated by high-tech industrial products as targets for proposed tariffs on $50 billion worth of imports. This is aimed at recouping losses from China’s alleged abuse of intellectual property. | ||
4/2/2018 | China said it will start levying tariffs on $3 billion of U.S. imports including fresh fruits, nuts, wine and pork. This is in response to U.S. tariffs on metals. | ||
Early April | Liu He told other officials that trade talks between the two parties broke down after the U.S. demanded that China curtail support for high-technology industries. | Beijing had offered to cut the bilateral trade deficit by $50 billion. | |
3/27/2018 | U.S. released Section 301 report on China. | ||
3/23/2018 | China unveiled tariffs on $3 billion of U.S. imports in response to steel and aluminum tariffs . | ||
3/23/2018 | US complained to WTO about Chinese protection of IP. | ||
3/22/2018 | U.S. proposed tariffs in response to China’s "unfair trade practices” related to technology transfer, IP, and innovation; says it will complain to WTO and look at restricting investment from China. | ||
3/9/2018 | Trump signed tariffs on imported steel and aluminum from all nations, including China. | ||
2/4/2018 | China started a one-year anti-subsidy investigation into sorghum imported from the U.S. | ||
1/22/2018 | U.S. imposed safeguard tariffs on washing machine and solar cell imports. While much of these imports don’t come from China, the statement makes clear that Chinese dominance of the global supply chain was a concern. |
Further Reading
- Timeline of the dispute from the Peterson Institute for International Economics.
- U.S. Trade Representative’s press release and report on the Section 301 tariffs on IP.
- WTO dispute list.
- Campaign speech by Donald Trump from June 2016 detailing much of what has become his international economic policy
- U.S. tariff lists:
- On $34 billion in imports (final)
- On $16 billion in imports (final)
- On $200 billion in imports (initial)
- Translation of all China’s tariff lists (with links to the original Chinese ones)
- China’s white paper making its case on trade.
--With assistance from Matthew Boesler, Natalie Lung, Jeff Kearns, Xiaoqing Pi and Miao Han.
To contact Bloomberg News staff for this story: James Mayger in Tokyo at jmayger@bloomberg.net
To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, James Mayger
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With assistance from Editorial Board