President Donald Trump, president of the United States, finally signed an agreement of the first phase of the trade agreement with China, which ends the hostilities of these two great world economic powers. «Today is a decisive step towards a future of fair and reciprocal trade between the two countries, «said the president of the United States. He received the Chinese delegation at the White House. Now the second phase that would begin the agreement is negotiated.
It is very hard to remember such a large attendance of representatives of this China in the White House. They were inside the president and vice president of China, accompanied by 16 senators and 11 deputies, four ministers and four other ambassadors among large investors.
Trump’s visit to China
Trump said he would visit China; However, such a visit does not have an official date. He also thanked the presence of the President of China, Xi Jinping, and his attitude to facilitate the agreement. Vice President Liu said that «the signing of this agreement is good for China, for the US and for the world.» Xi also mentioned that it is a fair deal for companies in both countries.
Vice President Mike Pence of the United States exclaimed that the most benefited are farmers and ranchers. «We hope that today is a new beginning for the people of the US and China,» Pence said.
This culminates an economic war that has lasted just over two years. This war has created high tariffs for both sides which has disturbed the international markets. Trump, in an attempt to empathize, tried to reduce the effects of these tariffs, which the Federal Reserve chief Jarome Powell rejected.
The terms of the agreement
The agreement between China and the United States is in a nutshell a truce of mutual hostilities. The most important part is that the U.S. canceled tariffs on Chinese products worth more than 160 billion dollars, which includes telephone and computer products, also reduced the tax by 7.5%, originally being 15% on items for a not insignificant amount of 112,000 million.
On the other hand, China pledges to import from the U.S. goods worth at least 200,000 million to specific manufacturers, and US farmers. The objective of this commitment is to maintain a balance in the trade balance. Another concession was to remove China from the official list of governments that manipulate its currency.
In turn, China is committed to collaborating with the US authorities to take measures that guarantee the prevention of theft of intellectual property. US companies in the technology and pharmaceutical sector protested to the authorities for not guaranteeing the protection of their products in China, because this country asks them for crucial design and manufacturing information, which they then deliver to cheaper and more beautiful domestic competitors. China undertakes not to request this information from companies that decide to enter its market.