Trump Inks the “Phase One” Trade Deal with China, Xi Congratulates on the Truce

The U.S. President Donald Trump and China Vice Premier Liu He had officially signed the so-called “Phase One” trade deal in Washington on January 15, 2020.

 

The 86-page agreement came after almost two years of tit-for-tat between the U.S. and China in raising tariffs on imported products.

In the agreement, China promised to boost purchases of U.S. goods and services by $200 billion over two years. The deal also provided better protection to American companies on intellectual property and trade secrets, dealt in China.

In exchange, the U.S. had agreed to reduce tariffs on $120 billion in Chinese products from 15% to 7.5%.

 

In a letter, China’s President Xi Jinping told Trump that the agreement was a sign their two countries could resolve differences through dialogue.

“Good for China, the US and the whole world,” wrote Xi in the letter.

 

Trump said that the next round of negotiations will start soon, however, tariffs would stay on as leverage against China and come off only when the administration completes the next phase of the deal.