In September 2008, China surpassed Japan and, with about $600 billion, became the largest holder of U.S. debt, or state coffers. The growing interdependence between the economies of the United States and China is evident, as a financial crisis threatens the global economy and fuels economic imbalances between the United States and China. At the same time, China imported more pork to cope with local shortages caused by the epidemic, resulting in U.S. pork exports exceeding their 2020 target (see Chart 3). In September, Chinese pork imports from the rest of the world also increased by more than 400% compared to 2017. And in one of the few parts of the first phase agreement, which includes political commitments (Chapter 3), China has agreed to remove technical barriers that had slowed pork imports. The deal was attacked by Democratic leaders, including Senator Chuck Schumer of New York, who criticized the deal for failing to address Chinese state-owned enterprises and industrial subsidies. He suggested that President Xi was laughing privately from the United States and that China had “brought President Trump to the cleaning staff.” Chinese Vice Premier Liu He, who signed the agreement on behalf of China, said the agreement was rooted in “equality and mutual respect” and defended his country`s economic model in his statements. U.S. farmers are particularly affected by Chinese retaliation. [194] In response, the Trump administration`s assistance resulted in farmers` hardships in the form of cash payments, guarantees of additional trade agreements and changes to environmental legislation for corn producers.

[202] [203] [204] [205] [205] According to the American Farm Bureau, U.S. agricultural exports to China increased from $24 billion in 2014 to $9.1 billion in 2018, including lower sales of pork, soybeans and wheat. Farm failures have intensified and agricultural machinery manufacturer Deere-Company has twice lowered its profit forecast between January and August 2019. [203] An August 2019 USDA report showed that Canadian wheat exports to China increased from 32% to more than 60% as U.S. wheat exports to China fell. [203] [206] Agricultural equipment producers were negatively affected by farmers` reluctance to invest in new equipment, with sales declining significantly in the first quarter of 2019. [207] [203] Despite the negative effects, the July 2019 polls showed that most farmers continued to support Trump, with 78% saying they thought the trade war would ultimately benefit American agriculture. [208] The Government Accountability Office announced in February 2020 that it would review the program after reporting that aid had been mis-distributed.

[209] All these obstacles and complications lead to political failure. Regardless of who is president, the United States must get China to liberalize its tariffs, reduce non-tariff barriers, and streamline its subsidies and other practices that distort economic incentives. In response to Trump`s trade war, China imposed additional tariffs on more than 50 percent of U.S. exports in 2018 and 2019.