UNITED STATES−President Donald Trump and the Vice Premier of the People’s Republic of China, Liủ Hè met for the signing of phase one of the U.S. and China Trade agreement on Wednesday, January 15.
“Today we take a momentous step, one that has never been taken before with China toward a future a fair and reciprocal trade as we sign phase one of the historic trade deal,” said President Trump. “Together we are righting the wrongs of the past. It doesn’t get any bigger than this.”
The first phase of the deal saw President Trump and China’s President, Xi Jinping agree to increase China’s purchase of U.S. goods and services by $200 billion over the next two years, including farm products. In exchange, the U.S. will roll back some of the tariff’s imposed upon China.
Other commitments in the agreement include:
-$54 billion in additional energy purchases
-$78 billion in additional manufacturing purchases
-$32 billion in additional farm products, and
-$38 billion in services agreed upon by the White House and China’s Finance Ministry
The first phase of the deal resolves 18 months of tensions between two of the world’s largest economies.
Key world stock market indexes soared reaching record highs. Stocks reached a plateau with fears of the United States and China being unable to resolve issues involving trade policies.
President Trump read aloud a letter praising President Xi, who was not present during the signing of the trade deal.