USA reaches new trade deal with China

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The more pessimistic, or cautious investors, will be of the view that there are still many road-bumps ahead and we are already seeing that Chinese officials have been reluctant to mention any specific targets with respect to the USA requirements for China to boost specified amounts of specific U.S. goods.

USA trade representative Robert Lighthizer said on 15 December that the deal is "totally done" despite the need for legal checks to the text.

As the new "phase one" informal trade agreement between the US and China has been closed, the two parties are hopeful that their economic relations will be resolved.

Among the tariffs to be affected are the December 15 tariffs against China, which will be completely rolled back as part of the deal. It's expected to be signed and released publicly in early January.

But whether Sino-US trade will expand significantly in other areas depends on how long the two sides can maintain the ceasefire, he said.

China and the United States have agreed on the text of a phase-one economic and trade agreement based on the principle of equality and mutual respect, and reached consensus that the USA side will fulfill its commitments to phase out its additional tariffs on Chinese products.

The "phase one" deal suspended a threatened round of US tariffs on $156 billion of Chinese imports that was scheduled to take effect on Sunday. That source said the signing and implementing the pact remained the main priority for success.

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China faces huge pressure to fulfil the phase one deal, said Shi Yinhong, a professor at Renmin University and an adviser to the cabinet.

"Trump will also force China to buy a lot of USA energy and manufacturing products at this stage or the next stage", Shi told a forum in Beijing on Monday. The tariffs were set to go into effect from the United States on December 15.

However, subtle but important differences between what US and Chinese officials say has been agreed upon have arisen in recent days, including about timing.

The US will keep 25% tariffs on about $250 billion of Chinese imports, along with 7.5% duties on roughly $120 billion of Chinese imports, the office of the US trade representative said. "There is not a single knowledgeable American negotiator who would support this falsehood", the agencies said in a joint statement.

"Chinese enterprises will import more high-quality and competitive goods and services from countries including the United States under the WTO rules as well as market rules and business principles", Chinese officials told reporters during a press conference on Friday in Beijing, reading from a prepared statement later published http://www.xinhuanet.com/english/2019-12/13/c_138629377.htm by Xinhua.

China stocks rose to a six-week closing high on Monday, as investors cheered a preliminary Sino-U.S. trade deal and upbeat data pointing to resilience in the world's second-largest economy. "If the hard-liners are making the decisions we're going to get one outcome, if the reformers are making the decisions, which is what we hope, then we're going to get another outcome".

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