Highlights

The United States of America consulate in Chengdu (southwestern China’s Province) officially closed in response to the closure of Chinese consulate General in Houston.

The US Chengdu consulate was an important outpost for the United States as it covered a large swathe of the nation including controversial autonomous region of Tibet. In 1985, V. President of United States of America George Bush was opened US Chengdu consulate.

USA-China Tensions

The ongoing trade war between United States and the People’s Republic of China has strained the tensions between United States and China. The relations have deteriorated further recently after guilty plea of Singaporean national who admitted spying in the United States for China.

Backthrow

United States and China are the most powerful economies globally. In 1984, United States became the 3rd largest trading partner of Mainland China. The issues between USA and China increased after China joining the WTO on 11 December 2001.

After signing US-China Relations Act of 2000 ( US Congress that granted China permanent normal trade relations (NTR) status), China could join the World Trade Organization. China was then given the status of Most Favoured Nation (MFN) by US in 2001. US-China Relations Act of 2000, was signed under United States Former President Bill Clinton.

After joining WTO, China began to violate World Trade Organization rules (GATT 1940’s, GATS 1995, TRIPS 1995), especially by lowering tariffs to 10 per cent by 2005. This affected USA trade with other nations as several countries preferred PR-China to the United States for its lower tariffs.

Present Scenario

In 2018, Trump administration announced tariffs on solar panels and washing machines imported from China. This was first time when the trade war began between two powerful economies United States of America and China.

China closed US Consulate in Chengdu China closed US Consulate in Chengdu