The trade deal was signed earlier this week enclosed is a brief summary:
- Agriculture Purchases: Over the next two years, purchase targets are expected to increase by $32 billion. China has also agreed to take steps that allow more market access for U.S. beef, dairy, fish, poultry and rice.
- Buying American: Beijing will ramp up purchases of U.S. goods and services by $200 billion over the next two years, using 2017 as a benchmark. This includes increased purchases of both manufactured goods by $77.7 billion and energy purchases by $52.4 billion.
- Currency Manipulation: China commits not to devalue its currency or make persistent intervention in its currency market. This commitment will include a schedule of regular disclosures of data regarding its foreign-exchange holdings.
- Financial Services: The deal removes barriers to help U.S. banking institutions, insurers and other financial-services companies expand in the Chinese market.
- Resolving Business Disputes: The deal calls for the creation of a dispute-resolution office that will address longstanding complaints from the U.S. business community regarding disagreements with Chinese partners that have not been fairly resolved.
- Tariff Relief: Prior to the trade deal, the U.S. agreed to cut the tariff rate it had imposed on roughly $120 billion in Chinese products to 7.5% from 15%. The U.S. also held off on tariffs of 15% on roughly $156 billion in consumer products that were set to take effect December 2019. The deal does not amend that prior agreement and President Trump said he would remove the tariffs if the next round of negotiations are successful
- Trade Secrets: The deal includes strong language related to preventing and punishing the mishandling of trade secrets. Furthermore, the deal makes it easier for U.S. businesses to persuade authorities to initiate a criminal investigation in China. In addition, the deal says U.S. businesses operating in China should be able to operate “openly and freely” without pressure to transfer their technology to foreign business partners.