In a huge step toward ending the 18 month-long trade war between the world's two biggest economies, the U.S and China have finally signed a Phase One trade agreement.
After U.S. President Donald Trump and visiting Chinese Vice Premier Liu He signed the deal at the White House on Wednesday, Trump praised the deal as a step toward fair and reciprocal trade between the two sides.
"Today, we take a momentous step, one that has never been taken before with China, toward a future of fair and reciprocal trade, as we sign phase one of the historic trade deal between the United States and China. Together, we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families."
According to the wording of the deal, it calls for China to submit an "action plan to strengthen intellectual property protection" within 30 days of the deal taking effect.
Other major takeaways include a provision that says China will increase its purchases of U.S. manufacturing, energy and agricultural goods and services by at least 200-billion US dollars over two years.
In exchange, the Trump administration agreed to scrap tariffs initially set to take effect last month, and agreed to cut duties on 120 billion dollars in products to 7.5 percent.
After signing the agreement, Liu He met with the press in Washington and emphasized the significance of the deal to both countries and to the wider world.
He said it will bring peace to the world and better market perspectives amid global uncertainties.
And just hours after Washington and Beijing signed the initial trade pact, the two sides advanced toward resolving some major remaining issues such as U.S. tariffs on 250 billion dollars of Chinese products.
In an interview with Fox Business Network, U.S. Vice President Mike Pence said they have already begun discussions on a Phase 2 deal.
Hong Yoo, Arirang News.