After a brief period of apparent calm with the signing of a trade deal in January, the U.S.-China relationship has worsened dramatically in the past few months, with the Covid-19 pandemic adding a new and deadly edge to an increasingly bitter and fiery competition. Many of the flashpoints were active this week, and observers will be watching China’s week-long annual parliament, which starts Friday, for Premier Li Keqiang and other senior officials to deliver their plans on defense, diplomacy, and a range of other issues — including relations with the U.S.
Here are five main areas where the two countries are in conflict:
Trade
The signing of a deal on trade and economic relations in January was meant to be a new start for the two nations, with President Donald Trump declaring that “our relationship with China is the best it’s ever been.” To implement the deal, China has lifted restrictions on a variety of U.S. agricultural imports including beef and poultry, continued opening up its financial sector and published a guideline on intellectual property protection.
The centerpiece of the agreement was China’s promises to buy more U.S. goods and services, but even before the coronavirus hit analysts were questioning whether those targets were realistic. Now, with both Chinese demand and U.S. manufacturing and transport capacity down due to the virus — and prices falling for energy and other goods — those promises look even further out of reach. China is behind where it needs to be to achieve the 2020 targets.
Kevin Hassett, an aide to Trump, told CNBC Monday that while China seemed to be adhering to the trade deal before the virus, the pandemic has brought a reboot in relations with the U.S. and “tensions are high with China right now.” If those tensions increase, a failure to reach the deal’s terms could cause it to collapse.