The US and China on Wednesday declared a truce after months of trade war by signing a partial deal which could pave wayto a more substantial and comprehensive agreement in future, reports say.
The so-called ‘phase one’ trade deal will come into effect next month.
While the details of the deal are still not known, it is expected to ease tensions between the world’s two leading economies.
Calling the agreement a momentous step towards a fair and reciprocal trade, US President Donald Trump said it would guarantee economic justice and security for American workers, farmers and families.
Once Phase Two deal is reached, tariffs on China will be rolled back. At the same time, the deal allows tougher tariffs on China if it fails to stick to the terms, Trump added.
Under the deal, China will buy $200 billion worth of US goods, including $50 billion in agricultural products over the next two years.
It will also buy $40 billion in additional US services, $75 billion more in manufacturing goods and $50 billion more in energy supplies.
After signing the deal with Trump, Chinese Vice-Premier Liu He, above, said it is good for China, the US and the whole world.
The two sides will try to implement it by sticking to the terms of agreement and accommodating each other’s core concerns, Liu said.
China’s state-run People’s Daily and Xinhua News Agency called the deal a new starting point by the two sides to address their complicated trade dispute.
The Global times said the deal comes in an election year and Trump wants it to gain more votes in agricultural, energy, industry and services-sector states.
The implementation of the phase one trade agreement should not be one-sided, the newspaper said.
Even as the trade deal was signed on Wednesday, Washington was preparing to impose new curbs on Chinese telecoms giant Huawei’s access to US technology.