Trade war: US, China reach ‘historic and enforceable’ phase one deal
- The agreement covers a wide range of issues, including intellectual property protection, technology transfers and agricultural purchases
- As an immediate result, a new 15 per cent tariff on around US$160 billion of Chinese goods, scheduled to come into effect on Sunday, was cancelled
China and the United States have made a breakthrough in trade negotiations, with a consensus agreement reached for a phase one deal that will halt further tariff increases and lower some already in place, vice-minister of commerce Wang Shouwen announced on Friday.
The Office of the United States Trade Representative (USTR) confirmed the agreement on Friday, saying in a statement: “The United States and China have reached an historic and enforceable agreement on a phase one trade deal that requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange.”
Both countries will proceed to detailed translations and legal review of the text and discuss arrangements for signing the agreement. US President Donald Trump’s chief economic adviser, Larry Kudlow, said that process should take “inside of a few weeks”, and that the final signing would be between US trade representative Robert Lighthizer and Chinese Vice-Premier Liu He.
The deal can help expanding economic and trade cooperation between the two nations and effectively manage the trade dispute
“The deal can help expanding economic and trade cooperation between the two nations and effectively manage the trade disputes,” Wang said.
Liao Min, deputy director of the office of the Central Commission for Financial and Economic Affairs, said that since the US agreed to reduce parts of tariffs imposed on Chinese products, China would consider not introducing tariffs on US products scheduled for Sunday.