Among other things, the trade deal obliges China to take action against the theft of American technologies and corporate secrets. At the same time, USD 200 billion are aimed at balancing out the trade deficit between the US and China.
By signing the contract, China agrees to import goods produced in the US, such as hardwood sawn timber, for a minimum value of USD 120 billion in 2020 and for at least USD 131.9 billion in 2021.
Both countries said that many of these topics are going to be discussed in a second phase of the trade deal. However, it is not known when talks are going to begin and how long they are going to take. In the meantime, the US will continue to put tariffs on around two thirds of imports from China. According to a statement by President Trump made on Wednesday, the tariffs are an indispensable leverage until the country agrees to further reforms.
