US, China sign 'phase 1' of trade deal

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President Donald Trump shakes hands with Chinese Vice Premier Liu He, after signing a trade agreement in the East Room of the White House, Wednesday, Jan. 15, 2020, in Washington.

The 86-page agreement includes a pledge that Beijing will make at least $32.9 billion in additional agricultural purchases over the next two years, though the Trump administration says China will attempt to buy more.

The commitment by China to buy an extra $200bn worth of United States goods includes $52.4bn of energy exports, $32bn of agricultural products, $77bn of manufactured goods and $37.9bn of services.

The United States and China signed a truce in their trade war on Wednesday after almost two years of tensions, bringing relief to markets but largely leaving massive tariffs in place.

While the agreement leaves many economic disputes between the two countries unresolved, Lovely said the 18-month trade war has allowed both sides to send a message.

The two countries are "writing the wrongs of the past", the US President said, adding that he would soon visit China and thanked his Chinese counterpart for this deal.

President Trump signed part one of a trade deal with China on Wednesday.

Officials from both countries have touted the deal as ushering in a new era for US-Sino relations, but it fails to address numerous structural differences that led the Trump administration to start the trade war.

"We've already begun discussions on a Phase 2 deal", Vice President Mike Pence said in a Fox Business Network interview. And even if it does not, it could bring in American goods in other ways, such as giving rebates to Chinese importers or offering a tariff-free quota on certain items.

But tariffs on about $360 billion of Chinese imports are still in place till the second phase of the deal is chalked out.

"From President Trump's perspective, it gives him a victory of sorts", Alden said. Experts estimate that USA exports to China this year would pass the $260 billion mark in the next 12 months. -China relationship and is a substantial step forward.

The agreement does not require the U.S. to strengthen its trade secret law, instead saying the United States "affirms that existing USA measures afford treatment equivalent" to the terms of the new deal.

The additional purchases will come on top of the 2017 USA export numbers. "We'll probably be able to conclude it with phase two". In other words, we got through probably - and ballpark numbers, we got through about half of what we wanted. China will leave in place tariffs on the $100bn worth of USA goods.

"We encourage the administration to stay at the negotiating table until the U.S".

In return, Washington agreed to modify its Section 301 tariff actions and canceled or reduced other tariffs.

Liu also pointed out that China's economy is "transitioning from high-speed growth to high-quality development", recognizing that a large market size and a considerable amount of middle-income consumers can power the engine of China's economy in the long run. But he said he didn't blame China that, he blamed his predecessors.

The Global Times admitted that the two sides "definitely have some regrets about the phase one agreement and are not so satisfied".

Washington said Beijing agreed to import, over two years, $200 billion of USA products above the levels in 2017, before Trump launched his offensive.

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