The president of the United States has finally signed the agreement of the first fas
e of the trade agreement with China, with which it puts an end to hostilities between the two largest economies in the world. According to Donald Trump, who has received a delegation from China in the White House, “today is a decisive step towards a future of fair and reciprocal trade between the two countries.” Now both parties negotiate the second phase, which will be the final one.
Rarely has a treaty signature brought together so many attendees in the East Room of the White House. The president and deputy prime minister and architect of China’s economic policy, Liu He, have been accompanied by 16 senators, 11 deputies, four ministers and four ambassadors. Also present were tycoon Sheldon Adelson, who made the bulk of his fortune in the casino business, and Henry Kissinger, who was secretary of state and National Security adviser to Richard Nixon when he restored diplomatic relations with China.
The vice president, Mike Pence, has argued that the biggest beneficiaries of this agreement “will be the farmers and ranchers of this country.” «We hope that today is a new beginning for the people of the United States. and China, ”said Pence.
Thus ends a trade war that has lasted more than two years and during which Washington and Beijing have crossed billionaires tariffs [impuestos sobre las importaciones] which have caused deep concern in international markets. Trump tried to alleviate the effects of these tariffs by forcing the Federal Reserve to repeatedly lower interest rates, something that its chief, Jerome Powell, resisted.
The terms of the agreement
The long-awaited trade agreement with China that Donald Trump has ratified in the White House today is rather a truce than an end to hostilities. The most important of this pact is that the United States has canceled tariffs on Chinese products worth 160,000 million dollars (140,000 million euros), including products such as mobile phones and computers, and reduced taxes from 15% to 7.5% on items in the amount of 112,000 million.
Trump has gotten from China the commitment that he will import from the US goods worth a minimum of 200,000 million to a number of US manufacturers, farmers and farmers. The objective of this commitment is to balance the trade balance, which remains deficient. The year 2018, the last of which has figures, USA He bought goods worth 539,000 million from China and barely sold 120,000 million to that country. That difference may be slightly reduced when the final 2019 data is made public.
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One of the White House concessions has been to remove China from the official list of governments that manipulate its currency, which was included in August. Then, Beijing had depreciated the value of its currency, the yuan, to mitigate the negative effect of tariffs and other economic sanctions. Today the dollar is exchanged for 6.89 yuan. In August it was changed to 7.17.
China also undertakes to collaborate with the US authorities to take measures that guarantee the prevention of theft of intellectual property. US companies in the technology and pharmaceutical sector have protested to the authorities in their country because the Chinese government forces them to share crucial information in the design and manufacture of their products that they then deliver to national competitors, which they sell at a much cheaper price. China undertakes not to demand that information from companies that want to enter its market as of now. .