The US & China on January 15 signed the first phase of a trade deal after 18-months of tough negotiations including several months of suspension of talks between the two largest economies of the world. The agreement was signed by US President Donald Trump and Chinese Vice Premier Liu He.
Crux of the Matter
The first phase of the trade deal includes Intellectual Property (IP) Protection and Enforcement, ending forced technology transfer, the dramatic expansion of American agriculture, removing barriers to American financial services, ending currency manipulation, rebalancing the US-China trade relationship and effective dispute resolution.
Punitive tariffs on China would remain in place till the time the second phase of the trade deal is agreed.
Presently the US has imposed tariffs on more than $360 billion of Chinese goods, and China has retaliated with tariffs on more than $110 billion of US products.
China has pledged to increase purchases of US products worth $200 billion over the next two years and the US commitment to roll back tariffs in phases on Chinese goods.
The trade deal is expected to help revitalise the global value chain disrupted by the trade war and remedy at least some of loss.
Liu He said, “economic and trade cooperation is the propeller of the overall bilateral relationship”
Chinese President Xi Jinping, in his letter to Donald Trump, said the phase one deal was good for China and the US and it needed to be earnestly implemented by both sides.
Donald Trump called the trade agreement a momentous step to a future of fair and reciprocal trade and said, “this is a transformative deal that will bring great benefits for the two countries.”
Curiopedia
The China-United States trade war is an ongoing economic conflict between the world’s two largest national economies, China and the United States. President Donald Trump in 2018 began setting tariffs and other trade barriers on China with the goal of forcing it to make changes to what the U.S. says are “unfair trade practices”. In the United States, the trade war has brought struggles for farmers and manufacturers and higher prices for consumers. In other countries, it has also caused economic damage. The trade war has been criticized internationally, including by U.S. businesses and agricultural organizations, though most farmers continued to support Trump. More Info
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