The election of former Vice President Joe Biden has already spawned talk in China that the country will seek to renegotiate the Phase One trade deal with the U.S., according to the South China Morning Post.
The report labeled the deal as being viewed in China as “twisted” and that they see a Biden administration as being more “rational.” The report specifically pointed to the purchase commitments made by China in the trade deal — to purchase $200 billion in additional goods from the U.S. beyond a 2017 baseline level.
"Biden will sooner or later launch a renegotiation of the trade deal, as the current deal is unrealistic. A renegotiation is also in line with China's wishes," Shi Yinhong, an advisor to China's State Council, said. But he also said the expectation is that a Biden administration would probably seek to extract more structural changes in any renegotiation effort. "The incoming Biden administration will probably take a tougher stance on Hong Kong, Taiwan, Xinjiang, South China Sea, other human rights issues, and the alleged Chinese intelligence activities in the U.S.”
Other China sources quoted in the article echoed the sentiments that a Biden administration would most likely use renegotiation as a “bargaining chip” to extract more pledges from China on issues like intellectual property or further opening its financial markets. But issues on labor and human rights would be less likely to see much give on the part of China.
U.S. trade contacts in the article indicated it was “wishful thinking” on the part of China relative to renegotiating the trade deal and that any such effort that is seen as making the deal easier on China would validate Trump campaign statements that Biden would be soft on China.