What's in the US-China Phase One trade deal

Robert Lighthizer

Chinese President Xi Jinping told Mr Donald Trump in a letter, read by Chinese Vice Premier Liu He at the signing of the deal in Washington, that he welcomes the Phase 1 trade deal reached with the US.

The U.S., in return, will reduce tariffs on some products made in China while keeping duties on $375 billion worth of Chinese goods. That unusual feature suggests Trump's trade negotiators weren't certain whether the event would happen as scheduled.

With the November election looming, Mr Trump is keen to showcase his proficiency in the art of the deal but today's accord fails to address his main gripe when he first imposed tariffs in July 2018: Chinese subsidies and the role of state-owned enterprises.

United States farmers were hit hard by the tariff war - notably on soybeans which saw exports to China plunge to just $3 billion from more than $12 billion in 2017.

The S&P 500's record high earlier on Monday came on investor optimism about the Phase One trade deal and also strong quarterly earnings posted by major USA banks such as JPMorgan Chase & Co and Citigroup.

'The tariffs will stay in place until there is a phase two.

The signing was preceded by Trump's speech in which the President thanked officials who have worked on the deal and said he would visit China soon.

While the deal falls short of the comprehensive agreement that Mr. Trump had sought when he first confronted Beijing over unfair trade practices, it does include a promise by China to stop the forced transfer of technologies from US companies doing business there.

"Together we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families", US President Donald Trump said as he touted the deal at the White House alongside Chinese Vice Premier Liu He and other officials.

"This is a great win for American business and American farmers", Mnuchin said.

Big Ben: Should the famous clock tower bong for Brexit?
Fellow party member Neil Gray added: 'The obsession with Big Ben chiming for Brexit really highlights the shallowness of the Vote Leave campaign.

The Phase 1 deal, reached in December, cancelled planned United States tariffs on Chinese-made cell-phones, toys and laptop computers and halved the tariff rate to 7.5 per cent on about $120 billion worth of other Chinese goods, including flat panel televisions, Bluetooth headphones and footwear.

"This gives China a big incentive to get back to the table and agree to the additional issues that are still unresolved", Mnuchin told CNBC.

As part of the deal China has made "enforceable commitments to refrain from competitive devaluation" and agreed to publish relevant data on exchange rates and external balances, the US Treasury said on Monday.

And even the achievements in the deal take the relationship back to where it was before Trump took office, restoring elements he scrapped. If the president gets phase two quickly, he will consider releasing tariffs. "If not, there won't be any tariff relief", Mnuchin said on Bloomberg TV.

'It has nothing to do with the election or anything else'.

Trump has repeatedly touted the trade pact as a boon for American farmers, saying China will buy $40 to $50 billion in agricultural goods.

China has committed to buying at least US$52.4 billion in additional energy purchases over the two years, from a baseline of US$9.1 billion in 2017. If disclosed, it would likely prompt a legal challenge by countries like Brazil and Argentina that have been exporting tons of soybeans to meet China's demand.

"It also means Chinese retaliation could be reinstated, dampening farmers' willingness to invest to meet the very hard export targets in the deal".

The label was removed earlier this week.

Related News:



Most liked

Chiefs-49ers most attractive Super Bowl 2020 matchup for oddsmakers
Green Bay didn't have much of a running game to support him and fell into a big hole, 23-0 by halftime. That only increases the pressure to deliver in the three biggest matchups of the NFL's 100th season.

Crisis On Infinite Earths Features Ezra Miller The Flash
Brandon Routh's Kingdom Come Superman got a new look by the end of the Crisis on Infinite Earths finale. So glad we could make this happen and keep it a secret until today. "Thank you to DC Comics ".

I hung up my weapons: Robert Downey Jr. on Iron Man
To show its admiration for the family and their story, Robert then presented the family a check for $20K, courtesy of Shutterfly. However, reports suggest that Goldblum was wrong that Downey Jr. was involved in the show, reports CNET.

Sia Reveals She's a Mom, Admits to Being Sexually Attracted to Diplo
In fact, she said she texted Diplo this year to see if he'd be interested in a no strings attached relationship. The magazine feature did not include any additional information on whether Diplo has accepted her offer.

Jay-Z Sues Mississippi Jail Authorities Over Out of Line Conditions
As Mississippi has incarcerated increasing numbers of people, it has dramatically reduced its funding of prisons. Jay-Z and Gotti beforehand mentioned in a letter that Spiro despatched to Corridor and Mississippi Gov.

Remains of OH teen who disappeared December 20 recovered
This time, they entered the house and knew something was wrong when they found the boy's jacket and glasses on the second floor. It was deadbolted and locked. "No case is tougher than when a kid goes missing". © Ohio Attorney General Harley Dilly .

Google Phone app may get call recording feature soon
We aren't sure why Google would implement call recording back into its native phone app again, but we aren't complaining. Further evidence comes in the form of three new strings, two for "Record" and one for "Recording".

Gangubai Kathiawadi FIRST Look: Alia Bhatt’s Fierceness & Innocence Makes A Kickass Combo
Now, we have got our hands on the first look of Gangubai Kathiawadi in the form of two characters. "In cinemas 11 September 2020". Vijay after being spotted at the Bhansali office, when quizzed on the same, revealed, "There is a film called "Gangubai".

Russian PM Medvedev submits resignation, state media report
Russian government has resigned following Russian President Vladimir Putin's state of the nation address, according to reports. Putin said Medvedev would take on a new job as deputy head of Russia's Security Council, which Putin chairs.

Stocks cling to tiny gains
Treasury prices are higher, driving down both the two-year and 10-year yields by 3 bps to 1.55% and 1.79%, respectively; U.S. In other trades, crude oil rose 5 cents to $ 58.28 per barrel in electronic trading on the New York Mercantile Exchange.

Foreseen consequences: Valve Index sold out globally
Half-Life: Alyx is due in only a couple of months, and the required VR headset is now practically sold out. Following on from Valve's announcement of Half-Life: Alyx , the VR headset market saw an immediate boost.

Queen + Adam Lambert to perform at Australia benefit concert
FIRE FIGHT AUSTRALIA will kick off from 1pm and run till late at ANZ Stadium , Sydney Olympic Park on Sunday 16 February 2020. Rolling Stone said Lang will perform two songs, including her rendition of Leonard Cohen's "Hallelujah".

China: Possible that new virus could spread between humans
She echoed Wuhan authorities' assertion that there remains no definitive evidence of human-to-human transmission. No other passengers were infected, it said, adding that the traveller was now ready to return to Wuhan.

Taken to Hospital After Colorado Mass Stabbing
Authorities said the attacks appeared to "be random and there is no known relationship between the suspect and the victims". The name of the suspect and the charges against him have yet to be released.

Deloitte: FAANGs may replace football's TV money
Their closest Premier League rivals are City and Liverpool in sixth and seventh respectively, with City just £88.9m behind. This time, Barcelona is officially the richest football club in the world for the first time.