The current US-China trade agreement refers to the Phase One trade deal signed by the two countries in January 2020. This agreement marked a significant milestone in the ongoing trade war between the two economic giants, which had escalated from 2018 onwards.
Under the terms of the agreement, China pledged to purchase an additional $200 billion worth of US goods and services over the next two years. This includes $77.7 billion in manufactured goods, $32 billion in agricultural products, $52.4 billion in energy products, and $37.9 billion in services.
In return, the US agreed to reduce tariffs on some Chinese imports and cancel others altogether. The US also agreed to refrain from imposing further tariffs on Chinese goods and to gradually roll back existing tariffs.
The deal also addressed issues related to intellectual property theft, technology transfer, and financial services. China committed to strengthening its enforcement of intellectual property rights and to refrain from requiring technology transfers as a condition for doing business in China. The US agreed to provide more access to Chinese financial services firms in the US market.
However, the COVID-19 pandemic has complicated the implementation of the trade deal. China`s purchases of US goods and services have fallen behind schedule due to the economic impact of the pandemic, and the US has accused China of not fulfilling its commitments. Thus, tensions between the two countries remain high.
Despite the challenges, the US-China trade agreement was seen as a positive step towards reducing tensions and improving economic relations between the two countries. The Phase One deal was intended to set the stage for further negotiations towards a more comprehensive trade agreement, but progress has been slow due to the pandemic and broader geopolitical tensions. The future of US-China trade relations remains uncertain, but the Phase One deal provides a framework for continued engagement and negotiations.