China’s US trade war deal is ‘is good for the world’ and‘will not impact’ imports from other countries

Vice-Premier Han Zheng told the World Economic Forum that commitments to buy more from the US are in line with World Trade Organisation (WTO) rules

The phase one deal signed last week with US President Donald Trump will see China buy an additional US$200 billion of goods and services over the next two years

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China’s Vice-Premier Liu He and US President Donald Trump signed the phase one trade deal lats week in Washington. Photo: Reuters

Published: 1:01pm, 22 Jan 2020Updated: 2:43pm, 17 Feb 2020

Vice-Premier Han Zheng told the World Economic Forum that China’s trade deal with the United States will not hurt rival exporting nations as complaints mount from governments that were left out of the agreement.

Han said that China’s commitment to buy more from the US are in line with its World Trade Organisation (WTO) obligations and will not squeeze out other imports.

He also pledged to lower barriers for foreign investors as he set out the case for China’s engagement with the global economy.

“The phase one trade deal is good for the US, China and the world. China’s increasing purchases of US goods are in accordance with WTO guidelines and will not impact its imports from other countries,” Han told an audience in Davos, Switzerland on Tuesday. “China will open its door wider. Though facing some protectionism from some countries, the determination to open up will not waver.”

The phase one trade deal is good for the US, China and the world. China’s increasing purchases of US goods are in accordance with WTO guidelines and will not impact its imports from other countries

Han Zheng

The speech came less than a week after another of China’s Vice-Premiers, Liu He, signed a phase one deal intended to de-escalate a trade war with US President Donald Trump.

The accord saw China commit to crack down on the theft of American technology and corporate secrets by its companies and state entities, while outlining a US$200 billion spending spree to try to close its trade imbalance with the US

Han made the comments just as Trump gave his own speech in Davos, in which the US president claimed credit for overseeing an economy enjoying its longest expansion yet, with an unemployment rate that fell to a five-decade low after tax cuts, deregulation and improved trade deals.