The trade war tension between the United States and the Chinese Government has been eased with the signing of the ‘Phase One’ Deal agreement.
Naija News understands that the two countries signed a so-called ‘Phase One’ deal on Tuesday thus putting on hold a trade war that has embroiled the world markets and slowed global growth over two years.
This online news media platform learnt that the trade deal has an in-depth 90-page or more agreement which includes the establishment of a dispute resolution mechanism, which is meant to ensure the deal is enforceable and provides further access to the Chinese market for U.S. financial service providers.
It also includes an agreement where the Chinese government will buy some 200 billion dollars’ worth of U.S. products over two years and implement stronger rules on intellectual property.
The U.S. said that if the sides could reach a more expansive Phase Two deal, Washington would roll back tariffs on hundreds of billions of dollars of Chinese imports.
The first phase leaves in place Washington’s tariffs on 370 billion dollars’ worth of Chinese imports while reducing the tariff rate on some of those goods from 15 to 7.5 percent.
Analysts also cautioned that some of the most difficult issues in the U.S.-China trade relationship remain unsolved, including Beijing’s subsidies programmes and the use of government-run businesses.
Still, President Donald Trump hailed the “historic” agreement at a lengthy White House signing ceremony.
✓ SIGNED@realdonaldtrump just signed the Phase One Trade Agreement with China.
This is the SECOND historic trade deal Republicans have delivered this year—just 15 days in to 2020!
and we're not done yet. pic.twitter.com/5rZzdeqFMY
— Senate Republicans (@SenateGOP) January 15, 2020
“Keeping these two giants and powerful nations together in harmony is so important for the world.