China WILL COMMIT to expanding imports and protections for intellectual property.
US President Donald Trump and The Chinese Vice Premier, Liu signed the historic Phase One trade deal on Wednesday at the White House.
President Trump said the deal will result in China greatly expanding imports from the U.S. The deal also provides the language for a strong and enforceable agreement in the the tech space encompassing illegal technology transfer and intellectual property theft.
“This increase will make important progress in rebalancing the United States-China trade relationship,” said a statement from the White House. “As a part of the new agreement, China has pledged to increase imports of American goods and services by at least $200 billion. China’s increase in United States imports will take place over the next 2 years, and the trajectory is expected to continue even after 2021.”
This follows President Trumps’ words that China has committed to purchase more than $200 billion in U.S. goods. A rough breakdown of the Chinese commitment is as follows:
- $50 billion in farm products
- $75 billion in manufactured goods
- $50 billion in energy commodities
- $40 billion to $50 billion in financial services.
As a result of the Phase One agreement, 5% tariffs on $250 billion of Chinese goods will remain, at least until a Phase Two deal is struck. The two countries will begin to negotiate Phase Two of a trade agreement which appears that 10% tariffs on $300 billion of goods will be reduced to 7.5%.
National Association of Manufacturers President & CEO Jay Timmons said “no other administration has achieved this level of success with — and accountability of — America’s primary economic adversary in the past three decades.”
The deal is a win for both sides as the economic juggernauts stand to prosper at positive economic growth with a more balanced ground for 2020 and forward while contributing positively to global trade at large.
