U.S., CHINA SEAL PHASE 1
Trade pact is boost for farmers, but differences remain
WASHINGTON — The United States and China reached a trade deal Wednesday that eases tensions between the world’s two biggest economies, offers massive export opportunities for U.S. farms and factories, and promises to do more to protect American trade secrets.
Still, the Phase 1 agreement leaves unresolved Washington’s fundamental differences with Beijing, which is relying on massive government intervention in the economy to turn China into a technological power.
President Donald Trump is wanting to show progress on an issue that he has made a hallmark of his presidency. Wednesday’s signing ceremony at the White House gave him the chance to do that.
“We mark more than just an agreement. We mark a sea change in international trade,” Trump declared during a rambling ceremony in which he made references to former FBI Director James Comey, the impeachment proceedings and a possible visit to Mount Rushmore on July Fourth for a fireworks display.
The Chinese delegation also praised the pact. Chinese leader Xi Jinping said in a letter to Trump that the first-phase deal was “good for China, for the U.S. and for the whole world.” He said it also showed the two countries had the ability to “act on the basis of equality and mutual respect.” The letter was read by Beijing’s chief negotiator, Vice Premier Liu He.
Some of the president’s Democratic critics were unimpressed.
“True to form, Trump is getting precious little in return for the significant pain and uncertainty he has imposed on our economy, farmers, and workers,” said former Vice President Joe Biden, one of the Democrats hoping to replace Trump.
The administration acknowledges the agreement leaves unresolved some U.S. complaints — most notably, the way the Chinese government subsidizes
its companies.
The agreement leaves in place tariffs on about $360 billion in Chinese imports, leverage the administration hopes will generate future concessions.