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According to a report published by CNBC.com, a diplomatic cable from Beijing arrived into Washington on Friday night with edits to a 150-page draft trade agreement containing what was described by CNBC citing Reuters as “riddled with reversals by China that undermined core U.S. demands”.

The CNBC report further details the changes to the seven chapter trade deal:

1. China deleted its commitment to change laws to resolve core complaints that caused the United States to launch a trade war:

2. China deleted its commitment to change laws to resolve theft of U.S. intellectual property and trade secrets;

3. China deleted its commitment to change laws to resolve forced technology transfers;
4. China deleted its commitment to change laws to resolve competition policy;

5. China deleted its commitment to change laws to resolve access to financial services; and

6. China deleted its commitment to change laws to resolve currency manipulation.

The U.S. Trade Representative, Robert Lighthizer viewed the changes to the China law as necessary to verifying compliance after years of what U.S. officials have called empty reform promises.

The CNBC report further continues saying the Chinese negotiators said they couldn’t touch the laws, said one of the government sources, calling the changes “major” and that changing any law in China requires a unique set of processes that can’t be navigated quickly.

Will post more news regarding the US/China trade war as they become available. If you have any questions about List 3 tariffs or have questions on what your company can do in light of these China tariffs, call David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.