China Agreement Phase 1
China Agreement Phase 1: What You Need to Know
The United States and China have been locked in a trade war since 2018, with tariffs and counter-tariffs being levied on each other`s goods. However, on January 15, 2020, the two countries signed the China Agreement Phase 1, a trade deal that is meant to ease tensions and increase economic cooperation between the two nations.
So, what does the China Agreement Phase 1 entail? Here are some key points to know:
1. Tariffs: The United States agreed to reduce some of the tariffs it had imposed on Chinese goods. In exchange, China agreed to increase its purchases of American goods and services.
2. Intellectual Property: Intellectual property rights have been a contentious issue in the trade war. The China Agreement Phase 1 includes provisions aimed at protecting American companies` intellectual property rights in China, such as requiring China to increase criminal penalties for the theft of trade secrets.
3. Financial Services: The agreement includes opening up China`s financial services market to American companies, allowing them to sell services like credit ratings, electronic payments, and bond underwriting.
4. Agriculture: China agreed to increase its purchases of American agricultural products, such as soybeans and pork.
5. Technology: The agreement also includes provisions aimed at preventing China from forcing American companies to transfer technology as a condition for doing business in China.
These are just some of the key points of the China Agreement Phase 1. While the deal was seen as a positive development in the trade war, some have criticized it for not addressing deeper issues such as China`s state subsidies for companies, which can make it difficult for American companies to compete.
Overall, the China Agreement Phase 1 is a step towards reducing tensions between the United States and China and increasing economic cooperation. However, it remains to be seen how the deal will be implemented and whether it will lead to a long-term resolution of the trade war.