Us China Trade Talk Agreement
The recent US-China Trade Talk Agreement: What You Need to Know
The US-China trade war, which began in 2018 after the US government imposed tariffs on Chinese goods, has been one of the most significant economic conflicts in recent times. The two countries have been engaging in back-and-forth talks for the past two years, and on January 15, 2020, they signed a deal that marked the first phase of the agreement.
The US-China Trade Talk Agreement covers a range of issues, including intellectual property, technology transfer, agriculture, financial services, and currency. The agreement requires China to increase purchases of US goods and services by $200 billion over the next two years, which includes $50 billion worth of agricultural goods, $75 billion worth of manufactured goods, $50 billion worth of energy products, and $40 billion worth of services.
The US has also agreed to reduce tariffs on Chinese products worth $120 billion from 15% to 7.5%. The remaining tariffs will remain in place until the second phase of the agreement is negotiated. The US government has stated that they will only remove tariffs if China follows through on its promises and commitments.
The agreement`s intellectual property provision requires China to strengthen its protections for trademarks, patents, and copyrights. The provision aims to prevent China from forcing US companies to transfer technology in exchange for access to the Chinese market. Chinese companies have been accused of stealing US intellectual property, and the agreement aims to address this issue.
The agreement`s financial services provision allows US companies to license and operate in China without partnering with a Chinese company. The provision will grant US banks, credit rating agencies, and insurance companies greater market access in China, which could benefit both countries` economies.
The US-China trade war has had a significant impact on the global economy. The International Monetary Fund (IMF) has estimated that the trade war reduced global economic growth by 0.8% in 2019. It is hoped that the agreement will reduce trade tensions and stabilise global growth.
The US-China Trade Talk Agreement is a positive step forward in resolving the economic conflict between the two countries. However, there is still a long way to go before the trade war is fully resolved. The agreement`s second phase will focus on more complex issues, such as state subsidies and cyber theft. Until then, the world will monitor the developments to see how the agreement is implemented and whether it leads to a more stable global economy.