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What's In the US-China Trade Deal?

Reuters

   WASHINGTON - The United States and China have agreed on the terms ofthe
   first phase of atrade deal thatwouldreduce some U.S. tariffs on Chinese
   goods while boosting Chinese purchases of American farm, energy and
   manufactured goods and addressing some U.S. complaints about
   intellectual property practices.
   Following are details of the deal released by both sides.The broad
   outlines weresimilar toa [1]deal in principleannouncedby Trump in
   October that was dominated by increased Chinese purchases of U.S.
   agricultural goods.
   Tariffs
   The United States will not proceed with 15% tariffs scheduled to go
   into effect Sunday on nearly $160 billion worth of Chinese goods,
   including cellphones, laptop computers, toys and clothing.
   China canceled its retaliatory tariffs scheduled to take effect that
   same day, including a 25% tariff on U.S.-made autos.
   The United States will cut by half the tariff rate it imposed on
   September1 on a $120 billion list of Chinese goods, to 7.5%
   U.S. tariffs of 25% on $250 billion worth of Chinese goods will remain
   unchanged, providing U.S. negotiating leverage for a second phase of
   negotiations next year.
   Trade deficit
   U.S. officials say China agreed to increase purchases of American
   products and services by at least $200 billion over the next two years,
   with an expectation that the higher purchases will continue after that
   period.
   The purchases include manufactured goods, agricultural goods, energy
   and services, and are expected to reduce the $419 billion U.S. trade
   deficit with China, officials said. China bought $130 billion in U.S.
   goods in 2017, before the trade war began, and $56 billion in services,
   U.S. data show.
   Agriculture
   China has agreed to increase purchases of U.S. agriculture products by
   $32 billion over two years. That would average an annual total of about
   $40 billion, comparedwitha baseline of $24 billion in 2017 before the
   trade war started.
   Trump has demanded that China buy $50 billion worth of American farm
   goods annually. U.S. Trade Representative RobertLighthizersaid China
   agreed to make its best efforts to increase its purchases by another $5
   billion annually to get closeto$50 billion.
   China has committed to reduce nontariff barriers to agricultural
   products such as poultry, seafood and feed additives,as well as
   approval of biotechnology products.
   Intellectual property
   The deal includes stronger Chinese legal protections for patents,
   trademarksandcopyrights, including improved criminal and civil
   procedures to combat online infringementandpirated and counterfeit
   goods.
   The deal contains commitments by China to follow through on previous
   pledges to eliminate any pressure for foreign companies to transfer
   technology to Chinese firms as a condition of market access, licensing
   or administrative approvals and to eliminate any government advantages
   for such transfers.
   China also agreed to refrain from directly supporting outbound
   investment aimed at acquiring foreign technology to meet its industrial
   plans--transactions already restricted by stronger U.S. security
   reviews.

References

   1. https://www.whitehouse.gov/briefings-statements/remarks-president-trump-vice-premier-liu-peoples-republic-china-meeting

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