The U.S. Trade Representative’s office announced on Friday that the U.S. and China had reached an agreement on a Phase One trade deal that requires structural reforms and other changes to China’s economic and trade regime. Affected areas include intellectual property, technology transfer, agriculture, financial services, currency and foreign exchange.
The Phase One agreement includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years. The agreement also establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement. The U.S. has agreed to modify its Section 301 tariff actions in a significant way.
The U.S. first imposed tariffs on imports from China based on the findings of the Section 301 investigation on China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The United States will be maintaining 25 percent tariffs on approximately $250 billion of Chinese imports, along with 7.5 percent tariffs on approximately $120 billion of Chinese imports.