President Donald Trump signs phase one of U.S.-China trade deal
The United States and China have signed an initial trade agreement that will remove some tariffs and increase China’s purchases of American goods and services, defusing an 18-month conflict between the world’s two largest economies..
«Together we correct past mistakes and secure a future of economic justice and security for American workers, farmers and families», – said US President Donald Trump, speaking at the White House along with Chinese Deputy Prime Minister Liu He and other officials.
The centerpiece of this deal is China’s pledge to acquire at least $ 200 billion of additional US agricultural products and other goods and services within two years, up from a baseline purchase of $ 186 billion in 2017..
According to Donald Trump, the deal will include additional orders for US agricultural products worth $ 50 billion, adding that he is confident that US farmers will be able to meet greater demand. He also said that China will spend $ 40 billion to $ 50 billion on additional US services, $ 75 billion in industrial goods, and increase energy supplies by $ 50 billion..
Officials from both countries hailed the deal as the beginning of a new era in U.S.-China relations, but experts say it fails to address many of the structural differences that led to the Trump administration launching a trade war..
These include Beijing’s longstanding practice of supporting state-owned companies and flooding international markets with cheap goods..
Donald Trump, who took politics as a basis «America first» (“America first”), aimed at restoring the balance of world trade in favor of American companies and workers, said that China has pledged to take action to address the issue of pirated or counterfeit goods, and that the deal includes robust intellectual property rights protection.
He calls on China to submit «Action Plan to Strengthen Intellectual Property Protection» within 30 days after the entry into force of the agreement, according to the trade pact. The proposal will include «measures that China will take to fulfill its obligations» and «the date on which each measure will take effect». The agreement says that companies must be able to act «without any force or pressure from one of the Parties to transfer their technologies to persons of the other Party». Technology transfer «should be based on market conditions that are voluntary and reflect mutual consent»
Earlier, White House chief economic adviser Larry Kudlow told Fox News that the deal would add 0.5 percentage point to U.S. GDP growth in 2020 and 2021..
Agreement on "Phase 1", signed in December, canceled planned U.S. tariffs on Chinese-made mobile phones, toys and laptops and halved the tariff rate to 7.5% on other Chinese goods valued at about $ 120 billion, including flat-panel TVs, Bluetooth headphones and shoes.
But it retains 25% tariffs for a huge array of other $ 250 billion worth of other Chinese manufactured goods and components used by US manufacturers..
Trump, who positioned the agreement on «Phase 1» as the basis of his 2020 re-election campaign, said he would agree to lift the remaining tariffs as soon as both sides agree on an agreement on «Phase 2». He added that these negotiations will begin shortly..
He also said he would visit China in the near future..