United States President Donald Trump and Chinese Vice Premier Liu He signed on Wednesday the phase one trade agreement between the world's two largest economies. The signing of the deal came after on and off negotiations that started in the summer of 2018 and ended last December.
As part of the deal, China has pledged to spend $200 billion more on US goods compared to 2017 levels, and to import no less than $12.5 billion worth of agricultural goods in 2020 and $19.5 billion in 2021. However, market conditions, the two sides agreed, might determine the timing of purchases in any given year, particularly in the case of farm goods.
When it comes to services, China will spend $12.8 billion more in 2020, whereas on energy, Beijing has agreed to spend $12.5 billion more in 2020. In 2021, the figure will nearly triple as the Asian nation will spend $33.98 billion more than in did in 2017.
Furthermore, the agreement aims to address forced technology transfer and intellectual property protections, as well as currency manipulation guarantees.
According to the US president, once the accord "kicks in," that is 30 days upon signing, phase two of trade negotiations will begin. A timeframe on phase two is yet to be outlined.
