#USChinaDeal The "Phase One" agreement (signed in January 2020) was a truce in the trade war that began in 2018.
Key Points:
Chinese Purchases: China committed to purchasing an additional $200 billion in goods and services from the U.S. (agriculture, energy, and manufacturing) during 2020 and 2021.
Tariffs: The U.S. reduced or canceled some tariffs, but most of the mutual taxes introduced in the trade war were maintained.
Chinese Reforms: The agreement included promises from China to improve the protection of Intellectual Property and limit the forced transfer of technology.
Dispute Resolution: Mechanisms were established to resolve controversies without immediately resorting to the World Trade Organization (WTO).
Outcome:
China did not meet the agreed-upon purchase targets. The pact eased tensions in the short term but did not resolve the underlying structural issues (such as Chinese subsidies to state-owned enterprises). The agreement is viewed more as a ceasefire than as a long-term solution.
