China Boosts US Purchases in Phase 1 of New Trade Deal

China Boosts US Purchases in Phase 1 of New Trade Deal

"In order to fully capture the benefits of this deal, we need China to eliminate all tariffs on USA pork for at least five years". The first phase of the trade deal includes Intellection Property (IP) Protection and Enforcement, ending forced technology transfer, dramatic expansion of American agriculture, removing barriers to American financial services, ending currency manipulation, rebalancing the US-China trade relationship and effective dispute resolution.

President Donald Trump signs a trade agreement with Chinese Vice Premier Liu He, in the East Room of the White House, Jan. 15, 2020, in Washington.

Soybeans futures in Chicago fell 1.2 per cent, cotton slipped 1.1 per cent and hog futures we down 0.4 per cent. U.S. West Texas Intermediate crude is 0.4 per cent lower, while natural gas fell 2.8 per cent.

U.S. Vice President Mike Pence calls the signing "a good day for America, China and the world" in his speech. The US wants China to address the huge subsidies it gives to industries including steel and solar panels that have allowed Chinese companies to dominate those markets with cheap exports.

White House economic adviser Larry Kudlow said the administration "got a lot of what we wanted" in the deal. China has cut imports of American agricultural products during the long-running trade war between Washington and Beijing, roiling the economy in the nation's farm belt. That unusual feature suggests Trump's trade negotiators weren't certain whether the event would happen as scheduled. The two leaders are meeting again in Washington on Wednesday to sign the deal.

Chinese President Xi Jinping told Trump in a letter that he welcomes the phase one deal reached with the U.S. and that he is willing to stay in close touch with the USA leader.

But it will leave in place 25 per cent tariffs on a vast, $250 billion array of Chinese industrial goods and components used by United States manufacturers.

Former US Vice President Joe Biden, who is a leading Democratic presidential candidate, alleged that China is the big victor of Trump's "phase-one" trade deal with Beijing.

After several rounds of talks, the United States and China initially reached "a historic and enforceable agreement" in December, averting a new round of tariff hikes.

But he said he will only remove tariffs "if we're able to do phase two".

However, the most hard issues remain to be dealt with in "phase two" negotiations, including massive subsidies for state industry. That's a windfall for Trump supporters in rural America but an ambitious goal considering that China has never bought more than $26 billion in USA agricultural products in a year.

But steep 25% tariffs remain in place on much of what the US buys from China, including components that American factories use to assemble finished products.

"I'll be going over to China in the not-too-distant future to reciprocate", he said. But the fate of the remaining duties has been unclear, with economists saying they are likely to continue to be a drag on both economies.

The deal also restores a twice-yearly dialogue process that previous administrations conducted regularly but that Trump scrapped.

Related Articles

  • China Bans Human Rights Watch Head from Hong Kong

    China Bans Human Rights Watch Head from Hong Kong

    Neither Beijing nor Hong Kong has provided further details of what those sanctions might entail, according to HRW . During the protests several activists, foreign journalists and academics were barred, HRW said in a statement.
    U.S.  speaks on its military presence in Africa

    U.S. speaks on its military presence in Africa

    Visiting the region last month, he complained of a lack of "clear political condemnation of anti-French feelings" on the ground. In a statement early in January, UN chief Antonio Guterres warned that "terrorist groups are gaining ground".
    AG Barr: Pensacola Shooting was an 'Act of Terrorism'

    AG Barr: Pensacola Shooting was an 'Act of Terrorism'

    The shooter posted a message on social media in September that stated "the countdown has begun". Once discovered, an investigation was launched into other Saudi members present at the base.
  • Visa to acquire Plaid for $5.3 billion

    Visa to acquire Plaid for $5.3 billion

    The purchase price is twice the final private valuation and Visa is funding the transaction from cash on hand and debt issuance. Visa Inc. (NYSE: V) is acquiring a financial technology company for $5.3 billion, the company announced on Monday.
    Putin denies sending mercenaries to Libya

    Putin denies sending mercenaries to Libya

    Putin and Erdogan reached a consensus on Wednesday and urged to establish a ceasefire in Libya starting at midnight on January 12. Earlier this week Turkey and Russian Federation urged Libya's warring parties to declare a ceasefire on Sunday.
    Trump goes after Democrats over impeachment

    Trump goes after Democrats over impeachment

    Warren says she's prepared to spend days in the Senate, then fly back to Iowa for evening campaigning "if that's what it takes". Let's be optimistic about the future, a future that will not have Donald Trump in the White House .
  • Joe Burrow smokes cigar in incredible video after LSU win

    Joe Burrow smokes cigar in incredible video after LSU win

    This is their fourth title game in five seasons, and if they win tonight this will be their third championship in four seasons. Of course, the two QB's were Joe Burrow for LSU and Trevor Lawrence for Clemson .
    Ford's China sales drop 26%

    Ford's China sales drop 26%

    GM saw a 15 percent drop in 2019 sales from a year earlier to 3.09 million vehicles, said General Motors in a statement. Communist leaders are trying to accelerate industry development by ending curbs on foreign ownership of automakers.
    The Indian Supreme Court criticizes the government's shutdown of the Internet

    The Indian Supreme Court criticizes the government's shutdown of the Internet

    Wells will arrive in Pakistan on January 19 for a three-day visit, the USA state department has previously said. She will then proceed to Islamabad on a similar, three-day visit that will begin on Jan 19.
  • Oscar Nominations 2020: Surprises, Snubs, and 'Joker' Leads the Pack

    Oscar Nominations 2020: Surprises, Snubs, and 'Joker' Leads the Pack

    Other movies that each received 10 Oscar nominations included The Irishman , Once Upon a Time ... in Hollywood , and 1917. It's the kind of story we don't see often enough and it's exactly what Michelle and I hope to achieve with Higher Ground.
    Trump Administration Announces Completion of 100 Miles of Wall Across Southern Border

    Trump Administration Announces Completion of 100 Miles of Wall Across Southern Border

    The case can still be appealed further, but the ruling was a win for Trump, who campaigned on the promise of a border wall. The Congressionally approved funds fell short of the Presidents initial demand of $5 billion for border wall construction.
    Morbius' First Trailer Is Here And Jared Leto Is Dripping With Blood

    Morbius' First Trailer Is Here And Jared Leto Is Dripping With Blood

    The photo was posted on Twitter, initially by a known insider of the entertainment industry. Note also the Spider-Man poster with "MURDERER" graffiti sprayed over it in the trailer.