President Trump says he will sign the phase 1 trade deal with China on January 15th
- President Trump says he will sign the phase 1 deal with China on January 15th at the White House.
- The specifics of the trade deal and an official text document is yet to be revealed.
- Negotiations regarding industrial subsidies will be addressed in the next round of trade talks.
- Signing the phase 1 trade deal is likely to cast a strong impact on the global financial markets.
Washington announced on Tuesday that Chinese representatives have been invited to the White House on January 15th to sign the phase 1 trade deal. The specifics of the trade deal, however, still remain to be revealed.
As per Trump’s tweet, he plans on visiting Beijing after the deal is signed in order to extend the negotiations for the next phase. The details of the deal divulged so far include the United States of America reducing tariffs on a few of the Chinese goods as China will reciprocate with significantly increasing its purchase of U.S based agricultural and other products. The phase 1 deal did also address a few of the disputes regarding intellectual property.
An Official Text Document Of The Trade Deal Is Yet To Surface
However, an official text document highlighting the terms and agreements of the deal has not yet been made public. Moreover, Chinese officials have so far not made an official announcement that they have agreed to increase the purchase of American goods by $200 billion in the next two years.
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As per the U.S data, China purchased $56 billion worth of American services and $130 billion of products in 2017 before the start of the trade war. The trade war between the two largest economies of the world started in 2018 as the U.S accused the Asian superpower of unfair trade practices that included illegal subsidies that gave a market edge to the Chinese state-owned businesses as well as U.S intellectual property theft.
The U.S Trade Representative (USTR), Robert Lighthizer, previously declared that the phase 1 deal will see enhanced protections for trademarks, patents, and copyrights. It will also implement serious civil and criminal procedures to address the rising challenge of pirated goods and online infringements.
U.S And China Will Negotiate Over Industrial Subsidies In The Next Round Of Talks
Matters concerning industrial subsidies are expected to be addressed in the next round of negotiations, as per the USTR.
A spokesman for China’s foreign ministry was also requested on Tuesday to comment on an expected date on which the deal is likely to be signed. The spokesman, however, referred the questions to the Commerce Department with no further remarks.
The U.S – China trade war has been the director of the global financial markets in 2019. The earlier complications as well as current optimism manifested lucratively in the financial markets. As per the analysts, the next big move in the forex market is expected following the two parties signing the deal and making it official this month.