The U.S. and China announced Friday that they have reached an agreement on joint trade, a deal that will avert a new round of tariffs on Chinese goods that were set to take effect on Sunday.
China said it will increase imports from U.S. and other countries and the deal will remove tariffs on Chinese goods in phases.
China will make corresponding moves to U.S. tariff reductions.
The deal, after proofreading and legal checks, will be signed in the first week of 2020
It also reduces tariffs on $120B of imports to 7.5% from 15%.
The so-called phase one deal covers agricultural, intellectual property protection, tech transfer, opening China’s financial industry and currency, the Chinese Commerce Vice Minister Wang Shouwen said.
China plans to import U.S. wheat, rice and corn within quotas, but officials didn’t answer a question on the size of the purchases.
President Trump tweeted that under “very large Phase One Deal,” China “agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more.”
He said negotiations on the second phase will begin immediately. China, though, said Phase Two will depend on implementation of the Phase One deal.