Clete Willems Quoted in China Business Review on Phase One China Trade Deal

Akin Gump public law and policy partner Clete Willems was among the U.S.-China trade thinkers invited by China Business Review to contribute their opinions for the piece "Reflections on the Phase One Agreement."

The January 2020 Phase One agreement between the U.S. and China requires structural reforms and other changes to China's economic and trade regime. Willems, who served in the Trump White House as Deputy Assistant to the President for International Economics and Deputy Director of the National Economic Council, began by noting, "Overall, the Phase One deal has been a moderate success, with some limitations and shortcomings."

Among the positives, he listed the achievement of "key structural reforms" to China's IP laws, the reduction of barriers to U.S. agricultural exports, and increased market access for U.S. financial services firms, along with record sales of U.S. agricultural products to China.

Among the negatives, Willems said, "China appears to be falling short of structural commitments related to counterfeit goods, patent linkage, and biotechnology approvals, among others," as well as in its purchasing commitments. More fundamentally, he added, "Phase One is incomplete and does not address many of China's most unfair trade practices."

On a prescriptive note, he said, "Moving forward, the Biden administration should maintain and improve the Phase One deal as part of a broader three-part plan to compete with China," which he outlined as the U.S. embracing strategic competition with China, improving its protection of sensitive technology from China, and expanding its bilateral engagement with China.

To read his full comments, click here.