U.s. China Trade Agreement

The U.S.-China trade agreement is a topic that has been discussed widely in the media across the world. The trade war, which began in 2018, had created a lot of tension between the two most significant economies globally. However, in January 2020, the two countries announced “The Phase One Trade Agreement.” It was the first significant agreement signed between the two nations since the beginning of the trade war.

The trade agreement aimed to provide relief from the tariffs which were implemented on many products and commodities by both countries. The agreement highlighted various areas of mutual interest like intellectual property protection, lowering of tariffs on agricultural goods, increased purchases of U.S. services and products, transparency in foreign exchange markets, and opening of China`s financial services market.

The agreement outlined the purchase of U.S. goods and services by China worth $200 billion over a span of two years. The purchases included manufacturing, energy, agriculture, and services such as financial services. In exchange, the U.S. would lower the tariffs on Chinese goods worth about $120 billion.

The agreement provided relief to the agriculture sector that was severely hit by the trade war. The deal included China`s commitment to purchase an additional $32 billion worth of U.S. agricultural products over two years, including soybeans, pork, beef, poultry, and seafood.

The agreement also included intellectual property protection, opening China`s financial services, and improved currency transparency. It was a significant achievement for the U.S., which had been long complaining about intellectual property theft by Chinese companies.

However, the deal did not address certain issues like cybersecurity, China`s industrial subsidies, and human rights violations in Xinjiang. The agreement was also criticized by some experts who called it a temporary truce in the trade war, and they believe that the U.S. is losing its leverage over China.

In conclusion, the U.S.-China trade agreement was a significant win for both countries. It provided relief to the farmers, and it addressed many long-standing issues like intellectual property protection. However, there were several issues that the deal failed to address, and it remains to be seen whether it will create a lasting peace, or if the trade war will continue after the agreement expires.