President Trump has said the United States and China would sign a trade deal at the Whitehouse on the 15th January, even though the details of the deal are yet to be released it is rumoured to be very large. The importance of the signing falls down to the fact that it has taken two years of negotiation to get to this point, and the signing itself would lead to a trade truce between the two very large and influential economies. Furthermore it has not been confirmed of Xi Jinping, the Chinese Leaders attendance and the exact conditions of the deal are yet to be announced to the public.
However, the leaders of both countries have said that there would be multiple benefits of the deal that would include promises from China for increased investment in America’s farm and energy products. The deal also adds further limitations to currency weakening by Beijing and provides Americans doing business in China are provided with added security thanks to the further protections that will come with the deal. It is said that the deal will reduce tariffs ($120 billion worth of goods) scheduled for the fifteenth of December. However concerns have been made by the USA about China’s economic conduct particularly industrial policy.
Following the nineteen month trade dispute between the United States and China, there was raised tariffs on both sides and because no resolution could be reached China was able to avoid any additional tariffs and Trump succeeded in a policy win after re-election. After coming to a solid agreement in regards to the trade deal following negotiations, it had been said that the relationship between Trump and Xi Jinping would be an excellent political asset for both parties going into 2020.
