US & China sign ‘phase one’ trade deal to ease global economic tensions

Saturday, 18 Jan, 2020

President Donald Trump shakes hands with Chinese Vice Premier Liu He before signing "phase one" of a US China trade agreement. The more than year-long trade conflict resulted in multiple rounds of tit-for-tat tariffs on billions worth of goods.

India and China have been in talks since the trade war started for increased purchases by Beijing of commodities such as soybean which it had been mostly buying from the US.

According to the Office of the U-S Trade Representative, over the next two-years China agrees to buy $200 Billion dollars in American Goods.

The purchases will include up to $50 billion of USA agriculture, according to Trump and Treasury Secretary Steven Mnuchin, $40 billion of which has been confirmed by Chinese sources.

Instead, the Trump administration initiated more targeted trade negotiations which ultimately triggered a tit-for-tat trade war between the two largest economies in the world.

"President Trump's strategy was exactly right", he stated. "This deal will help to limit market access barriers for American internet companies and better protect innovative United States intellectual property. We look forward to exporting to Chinese customers hungry for American products", Perdue said.

Now the ugly. "Phase one" does not address the massive subsidies, cheap loans and assistance Chinese firms receive from the government. They were exhausted of being forced to share technological know-how as a cost of doing business there. "That will be tough".

"Today, we take a momentous step, one that's never taken before with China", that will ensure "fair and reciprocal trade", Trump said at a White House signing ceremony.

"The numbers are clear", said Kudlow. Trump wants to boost that to about $32 billion this year and to nearly $40 billion next year. That's one reason factories have been in a slump since last summer and we saw 12,000 manufacturing jobs lost just last month.

CCTV, China's state television broadcaster, said the deal would satisfy China's increasingly demanding consumers with products such as dairy, poultry, beef, pork and processed meat from the United States. "We do it better than anybody else in the world, and I can't say that any deeper in my heart than that, we are here to produce", Rhoades says.

"We're optimistic that signing the agreement will reopen some opportunities, especially for the Upper Midwest", she said. China needs our natural gas, they need our LNG, they need our coal.

In the conference, Trump said, "The agreement tears down major market barriers for US food and agriculture exports". "In that issue of 40% to 50%, no, we didn't lose". In other words, we got through probably - and ballpark numbers, we got through about half of what we wanted.

I think what China will try to do is they will try to attract more foreign investment, which is something they have been doing more. The deal also has many implications for the American economy, of which Texas is a big part.

"We are so competitive in this country with productivity", he said.