Daily Management Review

US-China Phase One Trade Deal To Be Signed 'Very Shortly, Says Trump


US-China Phase One Trade Deal To Be Signed 'Very Shortly, Says Trump
The United States and China would "very shortly" sign the so-called phase one trade deal, US president Donald Trump announced on Saturday.
"We just achieved a breakthrough on the trade deal and we will be signing it very shortly," Trump said at a Turning Point USA event in Florida.
The two countries had announced the agreement for a phase one trade deal earlier this month which brought down some of the heat of the acrimonious trade war between the two largest economies of the world. It has been more than 16 months now that the two countries have imposed tit-for-tat tariffs on each other’s goods worth billions of dollars. The trade war has not only hot the economies of the two countries but has roiled the global financial markets, slowed down global trade and threatened to slow down global growth. 
The phase one of the trade deal entails a pledge by the US to scale down dome of the tariffs it has imposed on Chinese goods against China promising to make purchases of American agricultural products in greater volume over the next two years.  
The phase one of the trade deal between the two countries would be signed in early January, Treasury Secretary Steven Mnuchin said last week. He also added that the negotiators and officials of the two countries had already translated the deal and the agreement was just undergoing a technical "scrub."
He had a "very good talk" with his Chinese counterpart Xi Jinping on the partial agreement on trade between the two countries to bring an end to the ongoing trade war, US President Donald Trump said on Friday.
China had "already started large scale" increases in purchases of US farm goods, as had been agreed in the interim trade deal, Trump tweeted. However, he stopped short of announcing any specific date for the signing of the phase one of the trade deal between him and the Chinese president.,
"Formal signing being arranged," he said.
In addition to suspending the latest proposed tariffs on Chinese goods which was slated to come into effect from December 15, Washington will also reduce the scale of some of the already imposed tariffs. China will in exchange purchase American farm products and other goods in greater amounts. 
But the two countries are yet to start discussions on some of the more contentious issues such as the US demand that China makes some fundamental structural changes to its trade policies such as granting subsidies to Chinese state run companies. It is likely that these issues will come up in the second phase of the trade deal between the two countries.