US President Donald J. Trump has entered into a new trade deal with senior Chinese economic leaders, in an 86-page documented pact that was signed at the White House on Wednesday. The move has been seen by observers as a conscious effort to bring to a closure the economic rivalry between the two power giants that has been on top gear for a couple of years now.
During the event, Trump promised to land in China in the “not too distant future” in a bid to cement the deal. His Chinese counterpart, Xi Jinping, in a letter addressed to the White House, hailed the document as a clear sign that dialogue could go a long way in resolving the issues crippling the two countries’ relations.
In the detailed letter that was read at the event by China’s Deputy Prime Minister Liu He, Xi expressed optimism about strong US-Chinese ties and urged Trump to keep his part of the bargain. He also affirmed that the deal was not just a positive step for the two countries, but also immensely beneficial to the world at large.
In the pact, China has undertaken to import an additional $12.5 billion of the US agricultural produce within a year and then scale up to $19.5 billion in the second year. The US will, in turn, reduce the import duty on $120 billion Chinese products from 15% to 7.5%. The changes are set to become operational within 30 days. China has however not made any commitments to reduce tariffs imposed on the US.
Trump announced that the second round of negotiations, and which will address more fundamental issues, will start soon.
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