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U.S. and China sign phase one of trade deal

Thu Jan 16, 2020
watermark Economic news

The ceremony of signing the agreement on the first phase of the trade dispute between the US and China took place last night. US President Donald Trump and Vice Premier of the State Council of China Liu He met at the White House in Washington.


The heads of states noted that trade negotiations were tough, but honest. At the meeting, a letter by Chinese President Xi Jinping was presented, in which it was noted that this agreement «is useful for China, the United States and the whole world».


The first phase of the deal suggests that China will increase US imports of at least $200 billion during two years. In exchange for this, the States will slightly reduce some duties and will not introduce additional measures in relation to China. However, the full range of duties on Chinese goods will not be canceled in the first phase, and the further fate of the tariffs will be discussed at the negotiations on the second stage of the trade deal.


Despite the fact that this agreement did not solve the key problems in trade relations between the US and China, it significantly reduced the degree of tension in world markets.


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