The United States and China signed a historic trade agreement Wednesday, ending a 18 month standoff.
The agreement involves the United States rolling back some tariffs and China committing to purchasing $200 billion in American goods over 2 years.
The commitments include $54 billion in additional energy purchases, $78 billion in additional manufacturing purchases, $32 billion more in farm products, and $38 billion in services.
“Together, we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families” President Trump declared alongside U.S. and Chinese officials.
SCMP reports The trade deal to be signed this week will include pledges by China to buy US$200 billion of US goods over two years in four industries, a Trump administration official and two other sources briefed on the matter said.
The target for manufactured goods purchases will be the largest, worth around US$75 billion. China will also promise to buy US$50 billion worth of energy, US$40 billion in agriculture and US$35 billion to US$40 billion in services, the three people said.
On Monday night, meanwhile, the United States removed China from a list of currency manipulators, a sign that the relationship between the world’s two largest economies was thawing slightly in the lead up to the signing of the phase one deal.
“In this context, Treasury has determined that China should no longer be designated as a currency manipulator at this time,” the US Treasury Department said.