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.
Still, the U.S. will leave tariffs on another 250 billion dollars of Chinese products until a Phase Two deal is signed.
"But we are going to be starting phase two. As soon as this kicks in, we'll be starting phase two. We're leaving tariffs on, which people are shocked, but it's great. But I will agree to take those tariffs off, if we are able to do Phase 2.".
According to President Trump, with more tariff relief projected for Beijing in Phase Two, there's a "big incentive" for China to get back to the negotiating table as soon as possible, and "agree to the additional issues that are still unresolved".
Lee Seung-jae, Arirang News.