Jan 16 2020
The United States and China signed a trade truce yesterday, enabling businesses around the world some respite after nearly two years of conflict.
However, tariffs on hundreds of billions of dollars in goods were not removed by the “phase one” agreement.
Among what were agreed includes pledges by China to increase purchases of American agricultural products and other exports for two years and providing protection for US technology in the country.
“Today, we take a momentous step, one that has never been taken before with China, that will ensure fair and reciprocal trade,” Trump said at the signing ceremony in White House.
Trump signed the deal with China’s Vice Premier Liu He, who has led Beijing’s negotiations with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
Trump thanked Chinese president Xi Jinping and said he would visit China soon.
Xi, in a letter to Trump read by Liu said the deal is good for China, for the US and for the whole world.
Stock markets worldwide reacted positively to the easing of US-China trade frictions with Wall Street hitting new records after the signing.
Trump said he will remove the remaining tariffs if the negotiations manage to reach “phase two”, which include dealing with more difficult issues such as China’s massive subsidies for state industry.
Analysts, however, were of the opinion that yesterday’s agreement does not improve US-China trade relations from before Trump came to power in 2017.