The US and China have finally signed an agreement to reduce the long-running 'trade war'.
The ongoing trade tension between the two countries was affecting not only the local markets but also the global economy.
US President Donald Trump has said that the latest agreement will prove to be a 'change-maker' in the US economy.
At the same time, Chinese leaders have described this agreement as 'a profitable deal in every way'. He says that 'this will help improve the relationship between the two countries'.
Under the agreement, China has promised to increase its US imports by $ 200 billion.
China has also talked about strengthening the laws of intellectual property.
'Trying to correct the mistakes of the past'
Under the agreement, the US has agreed to reduce the excise duty imposed on some Chinese products by 50%.
However a large part of the customs duty will still remain the same. Representatives and businessmen of both countries will talk about it further.
Jeremy Waterman, president of the Chinese Center at the US Chamber of Commerce, said, "There is a lot of work to do. One should be happy with what has just happened but not wait too long for further decisions."
The United States and China were embroiled in a 'trade war' under the 'like Ko Tit' strategy from 2018 itself.
The result was seen as an additional charge on products worth more than $ 450 billion.
Not only did this affect the flow of trade, but the global economy and investment were also affected.
The two countries signed the deal in the presence of prominent businessmen in Washington.
After the agreement, President Trump said that this would create the foundation for stronger relations between China and America.
Trump said, "Together we are correcting the past mistakes. Together we are preparing a future for economic justice and security. The agreement is in place, even more it is an attempt to bring peace in the world." "
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What are the terms of agreement?
- China has committed to increase its US imports by at least 200 billion dollars in comparison to the year 2017. For this, it has promised to increase agricultural imports by $ 32 billion, manufacturing imports by $ 78 billion, energy imports by $ 54 billion and services sector by $ 38 billion.
- China has also agreed to tighten the intellectual property law. This will make it easier for companies to take legal action against the violation of intellectual property rules.
- The US has promised to reduce the duty on Chinese products worth $ 360 billion from 50 percent to 25 percent.
China's Deputy Prime Minister Leo Khay signed the agreement on behalf of China. He said that this agreement has its roots in 'equal and mutual respect'.
He defended China's economic model and said, "China has developed a political and economic model that is compatible with its national reality. But this does not mean that China and America cannot work together. My We believe that we have many common business interests. We hope that both countries will abide by the agreement honestly. "
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Analysis: 'America's ambition is not fulfilled'
- Darshini David, BBC Of Economic correspondent
The White House has praised this agreement as saying it is excellent.
Till now, President Donald Trump was trying to protect American companies and jobs from 'China's unfair competition'.
The methods used in this 'attempt to save' were: huge tax or additional duty on imports.
This did not benefit but the loss of the same workers and businessmen of the two countries whom both countries were trying to save.
The deal reached between China and the United States is more than an attempt to stop the long-running trade war.
The two countries have not given too much tax exemption on each other. The duty on about two-thirds of the products imported from China is still the same.
Apart from this, America's concerns about Chinese modalities of business such as 'cyber theft' still remain.
Trump's ambition to write new rules of global trade can still not be fulfilled.
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