Trump Announces Partial Trade Deal with China
Oct. 11, 2019 (EIRNS)—President Donald Trump announced this afternoon from the Oval Office that a partial trade deal with China has been reached, called Phase 1. It includes, according to the President, agreements on intellectual property, financial services, agricultural purchases and agricultural structural changes, currency transparency, opening of the financial services sector in China, and more. The increase in tariffs scheduled for this month will not be implemented. China’s chief negotiator Vice Premier Liu He spoke briefly, thanking Trump for his message of congratulations on the 70th Anniversary of the P.R.C., and presenting him with a letter from President Xi Jinping. Both Trump and Liu said that the agreement was good for not only the U.S. and China, but also for the world. It is possible that Trump and Xi will meet at the APEC Summit in Chile next month, where the deal could be formally signed.
There were not any details, but here are the generalities:
• China will buy between $40-50 billion in agricultural goods. This is up from $8 billion now, and $16 billion at the highest point. Trump said this is the “largest agricultural order in history,” and that U.S. farmers better buy more land and more John Deere tractors and get busy. U.S. Trade Representative Robert Lighthizer stated that there were agreements on bio-tech issues which will facilitate U.S. products being sold in China, while the U.S. also made some changes to meet Chinese food requirements.
• On currency and intellectual property accords, there were no specifications given.
• U.S. Treasury Secretary Steve Mnuchin said he had held talks with Yi Gang governor of the People’s Bank of China, and that the financial services sector will be opened up to U.S. firms.
• On technology transfer concerns, Trump said there would be some changes made during phase 1, with more to be discussed in phase 2 and a possible phase 3.
Trump said while receiving the letter from Xi, “We knew we were going to have a successful phase 1.”