“Today we are making an important step in the future of fair and mutual trade”
US President Donald Trump and Vice Prime Minister Liu He signed the first phase of the trade agreement. He did not put an end to the 18-month trade dispute, but was an important step towards solving the problem that affected a huge number of companies in the US and China.
The agreement consists of 8 points, which include the protection and enforcement of the rights of American companies operating in China, the rapid growth of sales of US goods and services in China, and other issues. The US authorities agreed to reduce the duty on Chinese products worth $ 120 billion to 7.5%. The remaining tariffs will be in force in the process of agreeing on the second stage of the trade agreement.
The previous draft agreement implied numerous changes in Chinese law, which is why negotiations were disrupted in May 2019. The signed agreement does not force China to change any laws.
A large section of the agreement relates to China’s commitment to purchase US products. China is committed over the next 2 years to acquire US $ 200 billion worth of US goods and services.
“Today we are taking an important step in the future of fair and mutual trade. Together we correct the mistakes of the past … In the end, the Americans have a government that puts them in first place at the negotiating table.“
The US leader also added that this trade agreement will be the largest in history. Discussion of the second stage of the trade agreement began immediately after the signing of the first stage.