President Trump signed an interim trade deal with China today. The administration says the so-called “phase one” agreement is a step towards the de-escalation of a trade war.
Farmers and manufacturers have paid the price for the trade war between the two nations. And they are among the winners in this “phase one” deal which aims to end the nearly 2-year long trade battle.
Under the agreement, China will purchase billions in US agriculture products and end its practice of forced technology transfer for foreign companies that do business in their country.
Bottom line: It aims to protect US technology and trade secrets but its success rests on whether China will comply with the deal.
“It just doesn’t get any bigger than this, not only in terms of a deal but really in terms of what it represents. Keeping these two giants and powerful nations together in harmony is so important not only for us but for the world and the world is watching today.”
Investors hope this is the first step towards ending the costly tariff war over Beijing’s technology ambitions and trade surplus.