The United States and China agreed on the first part of a commercial transaction, which involves the phased abolition of the American duties on Chinese goods, according to “Medusa”.
This was announced by the Ministry of Commerce of China. It happened two days before the US planned to introduce new tariffs (some 25%) on Chinese imports with a total value of about 360 billion dollars. If it happened, would become one of the most serious blows for all time of trade war, which began in the spring of 2018.
As written the President of the United States Donald trump in his Twitter, China in exchange for the elimination of tariffs agreed on large purchases of American agricultural products, and energy and other products. He said that the power will stay previously imposed 25 percent tariffs, and 15 percent will be reduced in half, and confirmed that the introduction of new barriers, is scheduled for December 15 has been canceled. According to the President of the United States, the second part of the agreement should be concluded before the presidential election of 2020.
Photo: screenshot of Twitter
A year ago, the United States and China have entered into no such truce. Then trump also planned to introduce a record duty on Chinese products, but at the last moment cancelled this decision. It was planned that the remaining contradictions will be removed in the coming months, but no agreement had been reached. The parties were close to agreement in may 2019, but the trump at the last moment refused to sign the agreement and instead imposed new duties. In October, the President of the United States again stated that it would soon reach an agreement.
Before the transaction the publication Politico reported that it will include the obligation of China for the protection of American intellectual property, including directly at the request of the United States. The publication suggests that during his election campaign trump will present the conclusion of the transaction as one of its main foreign policy achievements. Trump will be grateful to the Industrialists and farmers: China pledges to buy American goods worth $ 200 billion within two years, including agricultural products price in the $ 50 billion. According to journalists, to trump the latter was particularly important, as farmers in the United States most affected by the measures taken by China in response to U.S. duties.
The current agreement does not eliminate the main contradiction, which trump started a trade war: the US President believes that China is stealing American intellectual property and against trade regulations, support their businesses. The President’s critics doubt that he will be able to achieve the adoption of other parts of the agreement that was the target of a trade war. We are talking about a more free access of foreign investors to the American market and China’s abandonment of the government’s measures to support its tech giants, including through the manipulation of the yuan.
As reported ForumDaily:
In August 2018, the United States imposed new import duties of 25% on goods from China. The list includes a number of items of Chinese products with a total value of $ 16 billion. These fees are the second part of the duties on imports from China goods worth $ 50 billion. The first part was introduced on 6 July and concerned goods worth 34 billion dollars.
Trump has warned China that in the case of reflex action on the part of Beijing duty can be further extended to goods the sum of 267 billion dollars. Thus, taking into account existing measures, the duties will be levied almost the entire volume of Chinese imports in the U.S., which exceeds $ 500 billion per year.
20 Feb 2019 trump demanded that China maintain a stable value of the yuan in trade negotiations between the two largest economies in the world. In particular, Washington hoped that Beijing will abandon the artificial devaluation of its currency in response to the introduction of us tariffs.
11 may trump ordered to impose duties on the importation into the United States of Chinese goods by about another $ 300 billion.
The Chinese authorities have announced the imposition of high duties on some categories of goods from the United States. In accordance with the decision of the Commission of the State Council on customs duties from June 1, 2019, the rates of duties on several imported from the US goods worth $60 billion will be increased and will amount to a total of 10 to 25%.