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US, China sign partial deal to end trade war

by ace
US, China sign partial deal to end trade war

This Wednesday is the first step towards ending the nearly two-year trade war between the United States and China. The two countries sign the first phase of an agreement – with several assignments from side to side – where retaliatory fees are withdrawn and investment in imports is resumed.

Phase One of this agreement calls for the start of reforms in Chinese technology transfer practices and an expansion of agricultural purchases between the two countries.

To sign this partial agreement, China's Deputy Prime Minister has been in Washington since Monday and will meet with Donald Trump at the White House.

Initially it was reported by international news agencies that the United States would stop imposing exorbitant customs duties on products imported from China as it has been happening. However, in recent hours, the Donald Trump government has said in a statement that this intention is a rumor and that "there is no agreement on a future reduction in customs duties".

This means that the Chinese government will be the first to make some compromises. Beijing pledges to increase imports of US products, to allow US companies greater access to the Chinese financial system and further promises that it will not artificially devalue its currency (the yuan), given that whenever this happens, Chinese products become cheaper, increase exports, to the detriment of other emerging countries, because they are less in demand.

The Asian giant is committed to buying about € 200 billion in US exports, which include agricultural goods, but also energy products and services.

US Trade Secretary Steven Mnunchin says he is confident that "the most complex technical issues are practically resolved," believing that future negotiations for new phases of the trade agreement will be "substantially easier."

The Chinese Government has also commented on this agreement, expressing optimism about the development of trade negotiations between the two countries, saying it believes that a definitive solution to a conflict that lasts more than a year and a half will be found.


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