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Trade Agreement with China and Us

The trade agreement between China and the United States has been a hot topic of discussion for years. The two countries have been in a trade war since 2018, which has had a significant impact on both sides` economies. However, in January 2020, the two countries signed a “Phase One” trade agreement that aimed to alleviate some of the tensions between them. This article will explore the details of the trade agreement and its potential impact on global trade.

The “Phase One” trade agreement between the United States and China was signed on January 15, 2020. The agreement aims to address some of the trade imbalances that have existed between the two countries over the years. Under the agreement, China agreed to purchase an additional $200 billion worth of goods and services from the United States over the next two years. This includes $77.7 billion worth of manufactured goods, $52.4 billion worth of energy products, $32 billion worth of agricultural products, and $37.9 billion worth of services.

The agreement also includes provisions on intellectual property protection, technology transfer, and financial services. China agreed to increase its protection of intellectual property and not to force U.S. companies to transfer their technology to Chinese companies. The agreement also includes measures to increase access to China`s financial markets for U.S. financial institutions.

The “Phase One” trade agreement is a significant step towards reducing tensions between the United States and China. However, it is only the first phase of a broader trade agreement, so there is still work to be done to resolve some of the more significant issues between the two countries. The “Phase One” agreement does not address issues such as cybersecurity, human rights, or China`s state-owned enterprises, which are all significant concerns for the United States.

The trade agreement`s impact on global trade is still unclear, but it is likely to have some effect. The increased purchases of U.S. goods and services by China could boost the U.S. economy and create jobs. However, the agreement could also lead to other countries being left out of some trade opportunities, as China focuses more on American goods and services.

In conclusion, the “Phase One” trade agreement between the United States and China is a step in the right direction towards resolving some of the tensions between the two countries. While the agreement has its limitations, it represents progress in a long-standing trade war that has impacted both sides` economies. The agreement`s impact on global trade remains unclear, but it is something to monitor and watch closely.