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Washington, Beijing reach ‘mini trade deal’

Posted October. 14, 2019 07:27,   

Updated October. 14, 2019 07:27


After two-day high-level trade talks in Washington D.C., the U.S. and China have reached a “mini deal” under which Washington will halt on further U.S. tariff increases on Chinese imports. In return, China reportedly agreed to purchase U.S. agricultural produce worth 50 billion U.S. dollars.

Commenting on the two-day Washington-Beijing high-level trade talks, U.S. President Donald Trump said Friday, “The two sides have reached a substantial phase 1 deal,” adding it will take up to five weeks to get the deal written. The U.S. and China have thus taken the first step to phased agreement through a partial deal for the first time in 15 months after the two economic superpowers started a trade war in July last year.

“The deal I just made with China is, by far, the greatest and biggest deal ever made for our Great Patriot Farmers in the history of our Country,” President Trump said on Twitter. According to the deal, Washington agreed not to proceed with a tariff hike from 25% to 30% on about 250 billion dollars in Chinese products that was supposed to take effect on Tuesday. In return, Beijing agreed to purchase U.S. agricultural produce worth 40 billion dollars to 50 billion dollars, President Trump said.

President Trump said that he will officially sign the agreement with the Chinese president five weeks later in Chile. If drafting of the agreement proceeds smoothly, Trump and Xi will likely sign the phase 1 trade deal between Washington and Beijing at the Asia Pacific Economic Cooperation (APEC) summit, which will take place in Chile on November 16 and 17.

Yong Park parky@donga.com