China and US agree trade pact

THE US and China moved a step closer to resolving their 18-month trade war after signing a preliminary ‘phase one’ agreement.

China pledged to import £151bn more goods from the US than it did in 2017, and will strengthen its intellectual property rules to make it easier to prosecute companies which steal ideas.

In turn, the US has agreed to scrap a wave of tariffs it was due to impose last month on Chinesemade goods such as mobile phones, toys and laptops.

It will halve the tariff rate to 7.5pc on around £91bn of other Chinese goods such as televisions, bluetooth headphones and shoes. But the vast majority of tariffs, including 25pc charges on an array of Chinese industrial goods and components worth around £190bn, will remain in place until a phase two deal is reached.

Talks on this next stage are set to resume in February.

US President Donald Trump hailed the agreement as ‘momentous’ during a speech in which he covered subjects ranging from fireworks on Mount Rushmore to why items bearing his signature keep turning up on eBay. He added: ‘Together we are righting the wrongs of the past.’

China’s vice-premier Liu He struck a more sombre tone, echoing a warning from the World Economic Forum earlier in the day as he said China and the US must work more closely together to tackle the world’s problems. ÷ Germany’s economy grew just 0.6pc last year – its slowest rate for six years – which it blamed on global trade tensions, export weakness and a downturn in the automotive industry.