US president Donald Trump has signed the first phase of a trade deal with China, leading to a surge in US stock markets.
Trump, who imposed tariffs on China for currency manipulation, intellectual property theft, and unfair trade practices, has finally secured a new trade deal with China after nearly two years of trade tensions. This prolonged conflict has negatively impacted U.S. farmers and contributed to a slowdown in global economic growth.
Trump signed the deal alongside Chinese Vice Premier Liu He in the White House’s East Room on Wednesday morning. He stated that tariffs on Chinese goods will remain in place until a “Phase Two” agreement is reached.
“We’re leaving tariffs on, which people were shocked by, but it’s great,” the president said. “I will agree to remove those tariffs if we are able to reach a Phase Two agreement. In other words, we’re negotiating with the tariffs.”
“With this signing, we mark more than just an agreement, we mark a sea change in international trade,” he added.
“The United States recognizes the importance of intellectual property protection,” the agreement states. “China recognizes the importance of establishing and implementing a comprehensive legal system of intellectual property protection and enforcement as it transforms from a major intellectual property consumer to a major intellectual property producer. China believes that enhancing intellectual property protection and enforcement is in the interest of building an innovative country, growing innovation-driven enterprises, and promoting high-quality economic growth.”
The deal between the two nations addresses intellectual property protection and enforcement, ending forced technology transfer, stopping currency manipulation, rebalancing the U.S.-China trade relationship, and ensuring that China will purchase up to $200 billion in U.S. goods, including agricultural products like soybeans and pork. This provides some relief to U.S. farmers who have been significantly affected by the trade war.