In itself, the document that the China and the United States have signed at the White House embodies, according to Donald Trump, "a large part of the agreement" that both countries hope to achieve after almost two years of trade war. This is a hyperbole considering that some of the key aspects of the Beijing-Washington dispute are outside the so-called phase one of the agreement, sealed today.
In an act of undeniable propaganda, President Trump said the event was a "great celebration" reached through his "determined action" to solve a problem that China did not blame. , but former US presidents. Thanks to him, he said, the Chinese will have more access "to the best products on the face of the earth". The summary, "the largest (commercial) deal ever seen." Partial, but "more detailed" than a global one.
The world economy is breathing a bit more lightened, although the tariffs the U.S. imposes on Chinese imports remain, for the moment. They will only be eliminated, Trump said, if the two countries are "capable of phase two" which, he announced, will be negotiated soon. Tariffs affecting Chinese products for a total value of $ 360 billion. Of this total, import tariffs of 7.5% apply for € 120 billion (a halving of the initial valuation) and 25% for the rest. In addition, Trump reserves the option to add more if Beijing violates the pact, but it continues to cancel those announced in December.
During the signing ceremony, which was made by Trump himself and Chinese Deputy Prime Minister Liu He, it was reported that China has pledged to buy $ 200 billion worth of American products. This is more than the $ 186 billion that China imported before the start of hostilities, and which some analysts see as unrealistic. Outside are fundamental issues like the Beijing subsidy to its companies, which the United States criticizes because they consider it to give the Asian giant an advantage.
Although there are no specific details of the pact, Trump has said that Beijing will invest $ 75 billion in industrial products, $ 50 billion in energy, between 40,000 and 50,000 in services (including financial), and 50,000 more in agricultural production.
"A bigger tractor"
An amount, in the latter case, against which Trump has said he has been warned. "Our farmers cannot produce so much," he said. But he exhorted them to "buy a bigger tractor". A wink to one of the sectors on which it depends that he can renew the position in November.
One of the chief satisfactions to the president is China's commitment to open its market to US companies that can operate without having to have partners in the country. There are also advances in preventing product hacking and intellectual protection of companies who want to go there, who may not be required to share the technical details of their products with Beijing. Hence the conciliatory message from its President, Xi Jinping, who expressed satisfaction in the agreement, in a letter: "Demonstration that our countries can act on the foundations of equality and mutual respect". .
1. When did the trade war begin?
In April 2018, the United States announced first tariffs on $ 1.3 billion worth of Chinese products worth $ 50 billion. China did not take a day to counterattack and set similar tariffs on U.S. products.
2. How much has the battle cost you so far?
In 2019, the trade war helped reduce the value of exchanges between the two countries by 14.6% to $ 541.223 billion, according to data from the Chinese administration. China's exports to the US fell 12.5% in 2019, and Chinese purchases of American products dropped 20.9% to $ 122.714 billion. China's trade surplus with respect to the US declined 8.5% compared to 2018.
3. What is left for the second phase?
Tariffs hold until key issues in the discussion are addressed, including the subsidies Beijing provides to its companies and which Trump views as unfair.
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