MercoPress. South Atlantic News Agency

US/China Phase One trade deal to be signed 15 January at the White House

“I will be signing our very large and comprehensive Phase One Trade Deal with China on Jan 15,” Trump tweeted.

A partial new US-China trade agreement will be signed in the middle of next month, US President Donald Trump said, announcing that he will also then travel to China for continued talks.

Washington and Beijing earlier this month announced a “Phase One” trade deal, de-escalating their nearly two-year trade war as Trump reduced or cancelled some tariffs while Beijing promised to adopt trade reforms and buy more US farm exports.

The text has yet to be made public pending what US officials say is a largely technical review.

“I will be signing our very large and comprehensive Phase One Trade Deal with China on Jan 15,” Trump tweeted. “The ceremony will take place at the White House. High level representatives of China will be present.”

US and Chinese officials have said the agreement includes protections for intellectual property, food and farm goods, financial services and foreign exchange, and a provision for dispute resolution.

Under the new deal, China has committed to a minimum of US$200 billion in increased purchases over the next two years from US manufacturers, farmers, energy producers and service providers, according to US Trade Representative Robert Lighthizer.

Trump said he will travel to Beijing to continue negotiations “at a later date” - showing willingness to pursue talks that have acrimoniously broken down more than once and left both sides to salvage a partial deal.

While the detente put a stop to further deterioration in the trade war, it leaves many of the barriers erected so far in place.

Trump cancelled plans to impose tariffs on US$160 billion in Chinese merchandise in mid-December - including hot consumer items like mobile phones - but punishing US tariffs remain for about US$250 billion in Chinese-made goods, including machinery and many electronic items.

The two economic powers have been locked in a bruising trade war since the first half of 2018 that has roiled the global economy and helped send the manufacturing sector into decline.