In December, the US and China announced that they had reached a limited trade agreement. This agreement, known as “Phase 1”, does not end the bitter trade war between the two sides, but it is certainly a sign of the worsening of trade tensions and a step in the right direction. The trade war, in which the United States and China imposed strict tariffs on their exports, has harmed the global economy and the manufacturing sectors in both countries. American farmers have also been hit hard by the trade war, which has resulted in the loss of almost two thirds of their exports to China.
In December, President Trump said that work on phase 2 would begin immediately, but in the meantime, markets are still waiting for phase 1 to be signed. Earlier this week, President Trump said the agreement would be signed on January 15, but there was no confirmation from Chinese officials. Phase 2 is expected to focus on the subsidies provided by the Chinese government. China has argued that subsidies are a matter of state sovereignty, which makes this problem difficult to solve.
In phase 1, China agreed to buy around $ 400 billion in goods and services over the next two years. This would almost double the current value of exports. Looking ahead to the 2020 elections, the deal with China could be a significant achievement for which it can claim recognition on the campaign.
Under the agreement, China agreed to protect intellectual property rights and prevent forced technology transfer. However, few details about the deal have been released, and we may remain in the dark until the contract is actually signed.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This items was originally published on FX Empire "data-reactid =" 22 "> This article was originally published on FX Empire