„The Phase 1 trade agreement could send a signal to Chinese negotiators that the U.S. can be tempered.“ U.S. trade agents said the deal would end a long-standing practice of China pressuring foreign companies to transfer the technology to Chinese companies, a precondition for market access. Lighthizer said China had also agreed to fight patent theft and counterfeit products, including forfeiture of counterfeit manufacturing machinery. Nevertheless, the Phase 1 agreement did not resolve Washington`s fundamental differences with Beijing, which depends on massive state intervention in the economy to turn China into a technological powerhouse. The agriculture chapter addresses structural barriers to trade and will support a dramatic expansion of U.S. food, agricultural and seafood exports, increase income from U.S. agriculture and fisheries incomes, increase rural economic activity and boost employment growth. Many non-tariff barriers to agriculture and seafood in the United States are addressed, including meat, poultry, seafood, rice, dairy products, infant food, horticultural products, feed and feed additives, pet food and agricultural biotechnology products. The agreement prohibits the United States and China from manipulating exchange rates or interest rates in order to devalue their currencies. China has also agreed to disclose its foreign exchange reserves and quarterly imports of goods and services. Last year, the Trump administration called China a currency manipulator and argued that China had deliberately repressed the value of its currency to give its exports a competitive advantage; this label was discontinued shortly before the signing of the Phase 1 trade agreement. The agreement removes tariffs originally planned for December 15, 2019, which would have had an impact on massive imports from China, such as mobile phones, toys and laptops.

He also reaffirmed Mr. Trump`s commitment to the customs union1. September 2019 from 15 percent to 7.5 percent of Chinese products worth $120 billion, including flat-screen TVs, Bluetooth headphones and shoes. However, other tariffs remain. These include 25% U.S. tariffs on $250 billion worth of Chinese products and China`s retaliatory duties on U.S. products worth $110 billion. According to U.S. Treasury Secretary Steven Mnuchin, the Phase 2 trade agreement, which was put on the market at the end of the first agreement, removes additional tariffs. A summary of the tariffs instituted by the two countries can be found in the table below. Derek Scissors, a China expert at the American Enterprise Institute, said the trade war had already given Trump an advantage, even though he didn`t force Beijing to change its economic policy: Trump`s tariffs reduced Chinese exports to the United States and reduced America`s trade deficit with China.