“Secured the status quo”: the US and China signed the first phase of the trade deal

The United States and China signed the first part of the deal. The ceremony was held in the East Hall of the White House. The American delegation was led by President Donald Trump, the Chinese - Vice Premier of the State Council of the PRC Liu He.

“This is a very important and wonderful event. Today, China and I are taking an exceptional and unprecedented step towards future trade on the principles of justice and reciprocity, signing the first phase of a historic trade agreement between the United States and China. Today, we are correcting the mistakes of the past and securing a future in which there will be economic justice and security for American workers, farmers, and families, ”Trump said.

He also expressed gratitude to his “very, very good friend”, President of China Xi Jinping, adding that “in the not too distant future” he will pay a visit to China.

According to Trump, this is the largest deal ever made. The head of the White House also revealed some details of the agreement. So, Beijing in the next two years should buy American goods for $ 200 billion. In particular, about $ 75 billion will go for industrial goods, about $ 50 billion for energy and more than $ 40 billion for agricultural products. In addition, “hard limits” are introduced to lower the RMB exchange rate.

“We keep the fees, but I agree to cancel them if we agree on the second phase. We need duties, otherwise we will not have cards in our hands, ”the head of the White House added.

In addition, US Vice President Mike Pence emphasized that after the conclusion of this transaction, a new chapter will open in relations between the countries.

“We are aware that the differences will remain between our countries, but today is the beginning of a new chapter in trade relations between the two largest economies in the world,” he said.

In turn, Liu He noted that the agreement will positively affect not only the PRC and the USA, but the whole world.

“This is a mutually beneficial agreement that will ensure stable economic growth, promote peace and prosperity and will serve the interests of producers and consumers in both countries. At the same time, this agreement is not directed against and will not affect the legitimate interests of any third country and complies with WTO standards, ”the Vice Premier of the State Council of the PRC said.

• Reuters
• © Kevin Lamarque

The so-called trade war between Washington and Beijing was launched in May 2018 with the signing by Donald Trump of a memorandum to combat the “economic aggression of China” in connection with the “huge trade deficit” and the massive theft of intellectual property. Then the United States began to impose duties on various types of Chinese goods. China responded with symmetrical measures.

The authorities of the two countries tried to come to an agreement to put an end to the trade war, but for a long time their efforts did not lead to anything. However, in September 2019, the head of the White House announced the achievement of preliminary agreements to conclude a “first phase deal”. The finalization of this part of the agreement became known on December 31, when Donald Trump named January 15 as the date of signing the first phase of the trade agreement.

“Dramatic improvement is not possible”

According to Grigory Yarygin, associate professor at the Department of American Studies at St. Petersburg State University, the signed agreement is a temporary measure. In his opinion, the United States has changed tactics in the economic confrontation with China.

“US tactics towards China are just changing their characteristics. The confrontation was marked over the past two years, last year there was an aggravation, and now a certain phase of rapprochement is taking place, but this does not mean that the United States has retreated from its protectionist policies to regulate trade relations with China and from the desire to change the trade balance. This means that now some kind of rapprochement is being declared, which fixes the status quo, and so far it is fixing it in the form in which the US president wants to see it, ”the expert said in an interview with RT.

However, he does not believe that China has made strategic concessions.

“I think that Beijing as a whole will wait for November, when elections will be held in the USA. If the president remains the same, then China will have to think about making concessions with an eye to the next four-year period. If the president in the USA changes, negotiations will resume, but the question of changing the structure of the trade balance between the USA and China will be no less acute, ”Yarygin explained.

In turn, a corresponding member of the Academy of Military Sciences, political scientist Sergei Sudakov, said that "the ax of war on either side was not buried."

“Trump believes that he outplayed China, which allegedly was frightened of a long war and went to a deal. In fact, the PRC is well aware that a huge number of companies that are in one way or another located in the USA locate their production in China, that is, almost every second thing that is sold in the USA is made in China. And the Chinese are well aware that these are the so-called deferred negotiations, this is a deferred war. The Chinese are now doing what the classical emperors of China would probably do - they froze the conflict, but this does not mean that the trade war is over, we are just entering a more protracted stage of the trade war between China and the United States. A dramatic improvement is not possible for one simple reason: because China and the United States are very fierce competitors, ”RT said.