President Trump’s “phase one” trade deal has been signed. Here’s what’s in it.
China has agreed to spend an additional $200 billion over the next two years on U.S. manufactured goods, agricultural goods, energy goods, and other services. China’s spending will increase by $77 billion in 2020 and $123 billion in 2021. In particular, China will be buying more U.S. agricultural products like soybeans, meat, and wheat.
China will also reform its policies on intellectual property, technology transfer, and financial services. China will end its practice of pressuring foreign companies to hand over technological innovations in exchange for Chinese market access, approvals, and other advantages.
“Today we take a momentous step, one that has never been taken before with China toward a future of fair and reciprocal trade with China,” Mr. Trump said Wednesday at the official signing ceremony. “Together we are righting the wrongs of the past.”
Trump said phase two will begin immediately now that phase one has been signed. “We don’t expect to have a phase three,” he said.
Response to the trade deal has been mixed, with some economists and experts saying the deal won't promote growth.
Trump has taken to Twitter to defend his deal, calling out Democrats who he says have applauded the deal behind closed doors but dissed it publicly.
"Cryin’ Chuck Schumer is saying privately that the new China Trade Deal is unbelievable, which it is, but publicly he knocks it whenever possible. That’s politics, but so bad for our great Country!" Trump tweeted.
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