US-China Trade War on Hold

The United States of America and China on 15 January came to an agreement to pause the ongoing trade war. A document was made available signed by the office of the US trade representative Obert E Lighthizer and the US Treasury Secretary Steven T Mnuchin.

The document attaches agreement on the Chinese side detailed in a letter with initial actionable items signed by Vice Minister Han Jun. The pause is part of the first phase of a trade agreement between the two countries. The initial phase was signed by Chinese Vice Premier Liu He and US President Donald Trump in Washington.

The document begins stating ‘REALIZING that it is in the interests of both countries that trade grow and that there is adherence to international norms so as to promote market-based outcomes’

The agreement covers in separate chapters Intellectual Property, Technology Transfer, Trade in Food and Agricultural Products, Financial Services, Macroeconomic Policies and Exchange Rate Matters and Transparency, Expanding Trade, Bilateral Evaluation and Trade Dispute Resolution, and Final Provisions.

The deal pushes China to increase US imports in agriculture, manufacturing, and services by over US$ 200 billion from the 2017 figure in the coming two years. Trump said of the agreement with China “It’s probably the biggest reason I ran for President, unlike others before me, I kept my promise. This is the biggest deal that anyone has ever seen.”

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