The United States and China have reached a historic and binding agreement on a first-phase trade agreement, which requires structural reforms and other changes to China`s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, currency and currencies. The Phase One agreement also provides for China to make significant additional purchases of goods and services in the United States in the coming years. It is important that the agreement creates a robust dispute resolution system that ensures timely and effective implementation and implementation. The United States has agreed to substantially amend its customs measures in accordance with Section 301. „We need to make sure that this is properly implemented,” Lighthizer said. „This is the first agreement of its kind, and we need to make sure it works.” The deal leaves tariffs on about $360 billion in Chinese imports, with the government`s leverage hoping to generate concessions in the future. „We mark more than just an agreement. We are marking a change in international trade,” Trump said at a noise ceremony, referring to former FBI Director James Comey, impeachment proceedings and a possible july 4 visit to Mount Rushmore for a fireworks display. The Chinese delegation also welcomed the pact.
In a letter to Trump, Chinese President Xi Jinping said the first phase agreement was „good for China, for the United States and for the world.” He said he also showed that the two countries were capable of „acting on the basis of equality and mutual respect.” The letter was read by Beijing`s chief negotiator, Vice Premier Liu He. Left: U.S. President Donald Trump stands with Chinese Vice Premier Liu He after signing the „phase one” of the U.S.-China trade agreement in the East Room of the White House in Washington, U.S., January 15, 2020. Photo: Kevin Lamarque/Reuters The government acknowledges that the agreement leaves some U.S. complaints unresolved, including the way the Chinese government subsidizes its businesses. That was the concern expressed when Trump sparked a trade war in July 2018 by imposing tariffs on Chinese imports. U.S. trade agents said the deal would end a long-standing practice of China pressuring foreign companies to transfer the technology to Chinese companies, a precondition for market access. Lighthizer said China had also agreed to fight patent theft and counterfeit products, including forfeiture of counterfeit manufacturing machinery. Nevertheless, the Phase 1 agreement did not resolve Washington`s fundamental differences with Beijing, which depends on massive state intervention in the economy to turn China into a technological powerhouse. The agreement aims to ease some U.S. economic sanctions against China, while Beijing must strengthen the purchase of U.S.
agricultural products and other products. For example, Mr. Trump cited beef, pork, poultry, seafood, rice and dairy products. The 86-sided agreement facilitates criminal prosecution in China against those accused of stealing trade secrets. It contains provisions to prevent Chinese government officials from applying administrative and regulatory procedures to remove the trade secrets of foreign companies and to allow such information to end up in the hands of Chinese competitors.