U.S. & China Sign Phase One of Trade Deal
Washington, DC, January 16, 2020-The U.S. and China signed a trade deal on January 15 easing the tension between the two counties, reports the Wall Street Journal.
“The U.S. and China signed a trade deal that officials say will lead to a sharp increase in sales of U.S. goods and services to China, further open Chinese markets to foreign firms-especially in financial services-and provide strong new protections for trade secrets and intellectual property.
“The eight-part agreement acts as a cease-fire in a two-year trade war that has roiled markets world-wide and cut into global growth. But it leaves in place U.S. tariffs on about $370 billion in Chinese goods, or about three-quarters of Chinese imports to the U.S.
"Possible tariff reductions will be left to later negotiations, which will cover a host of difficult issues at the heart of the trade battle, including Chinese subsidies to domestic companies and Beijing’s oversight of Chinese state-owned firms. Those talks are expected to begin fairly soon but not conclude until after the U.S. presidential election in November.”