Trump signs partial trade pact with China, calls it momentous step
After nearly two years of the cold war, the United States and China finally signed the 1st phase of trade truce on Wednesday, which concluded year-long tough negotiations and several months of suspension of talks. However, tariffs on hundreds of billions of dollars in imports remain in place leaving American businesses to foot the bill.
The pact was signed by the US President Donald Trump and Chinese Vice-Premier Liu He, Politburo Member and Vice-Premier of the People's Republic of China at the White House. Trump described the event as ‘a momentous step, one that’s never taken before with China and will ensure fair and reciprocal trade’.
Going by the deal, China will purchase at least an additional $200 billion worth of US farm products and other goods and services in two years over a baseline of $186 billion in purchases in 2017. The deal includes Intellection Property (IP) Protection and Enforcement, ending forced technology transfer and currency manipulation, expansion of agriculture in America and rebalancing the trade relationship between US-China.
Trade analysts who have been keeping a close eye on the Phase-1 deal between the two said that the tariffs could reduce the economic benefits by limiting China’s access to its second-largest trading market.