US, China set to sign massive purchases deal as trade war shows signs of easing.
Calling Truce?: After 18 months of a bitter trade conflict, the US and China are looking to reduce tensions as they sign Phase One of a trade deal on Wednesday.
Details about the deal have begun to emerge. China has pledged to purchase an additional $200bn worth of US goods over two years to cut a bilateral trade deficit that peaked at $420bn in 2018. Beijing will boost energy purchases by some $50bn and services by $35bn, while agricultural purchases will get a $32bn lift over the two years, all compared to a 2017 baseline of US exports to China. The goods China will buy more of from the US include aircraft, autos and car parts, agricultural machinery and medical devices.
US President Donald Trump and Chinese Vice Premier Liu He are scheduled to sign the 86-page document at the White House on Wednesday. Reuters
Not the End: A preliminary trade deal won't completely normalise relations between the world's two largest economies. Many issues remain. One of the main ones is technology. Washington regards Huawei as a national security threat, is cracking down on firms using Chinese telco equipment in the US and abroad, and is mulling restrictions on sales of any US technology to China. WSJ
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