The US-China Took First Concrete Step Towards Defusing Trade War
The United States and China signed a trade truce after nearly two decades of conflict. This truce came as a big breather for the global businesses that had been suffering losses due to the trade war between the two dominant economic powers of the world.
The US-China trade deal
Beijing would import an additional $200 billion in US products over two years and it would include additional $32 billion in agricultural goods. The current import would be bigger than the purchases of 2017 before Trump launched an offensive on China.
The trade war resulted in soyabeen exports to China reducing to only $3 billion from $12 billion in 2017. Due to the export slump, the Trump administration had to pay $28 billion to farmers as aid in the last two years. But leading economists are questioning whether the US farmers would be able to meet the growing demand for soyabeen.
Twice-yearly dialogue process is also restored in the deal. Previous US administration used to conduct the dialogue regularly before Trump scrapped the process.
Trump said the deal was momentous
US President Donald Trump said that he took a momentous step that was never taken before with China. He signed a deal with China’s Vice Premier Liu He. The Chinese Vice Premier said that deal was good for China, the Us and the world at large.
Trump said that the negotiations were tough but he was righting the wrongs of the past. He even thanked the Chinese Vice Premier and said that he would visit China soon.