The United States and China on Friday reached a phase-one trade agreement that reduced some US tariffs on Chinese goods and vice-a-versa. The phase-one trade deal will also boost Chinese purchases of American farm products and other goods. Wang Yi, the Chinese government's top diplomat while speaking to the media said that this is good news for global trade and will help in providing stability.
US President Donald Trump also acknowledged the phase one trade deal and said that the US would not go ahead with the new round of tariffs planned for December 15. Donald Trump also said that the United States will continue with the phase two trade deal immediately and will not wait until the 2020 presidential election.
We have agreed to a very large Phase One Deal with China. They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more. The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder....— Donald J. Trump (@realDonaldTrump) December 13, 2019
.....The Penalty Tariffs set for December 15th will not be charged because of the fact that we made the deal. We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 Election. This is an amazing deal for all. Thank you!— Donald J. Trump (@realDonaldTrump) December 13, 2019
China and the United States are involved in a brutal trade war since 2017. Both countries have been putting tariffs on each other's products, thus affecting global trade stability. The relations between the two superpowers soured after Donald Trump signed a law that would put sanctions on Chinese and Hong Kong officials who are involved in the ongoing pro-democracy protest in the region.
China in return put reciprocal restrictions that would put sanctions on non-governmental American groups working in Hong Kong and also restricted US warships from docking in Hong Kong ports. US and China also put restrictions on each other's diplomats and restricted them from conducting any meeting with local authorities without permission.