US and China have signed an agreement aimed at easing a trade war that has greatly affected the markets and weighed on the global economy.
Speaking in Washington, US President Donald Trump said the pact would be transformative for the US economy.
Chinese leaders called it a “win-win” deal that would help foster better relations between both countries.
China has pledged to boost US imports by $200bn above 2017 levels and strengthen intellectual property rules.
In exchange, US has agreed cut to half some of the new tariffs it has imposed on Chinese products.
However the majority of the border taxes remain in place, which has prompted business groups to call for further talks.
“There’s a lot of work to do ahead,” said Jeremie Waterman, president of the China Center at the US Chamber of Commerce. “Bottom line is, they should enjoy today but not wait too long to get back to the table for phase two.”
The US and China have engaged in a tit-for tat tariff war since 2018, which has led to extra import taxes being levied on more than $450bn (£350bn) worth of traded goods. The ongoing dispute has disrupted trade flows, dampened global economic growth and unnerved investors.
What’s in the deal?
- China has committed to increasing its US imports by at least $200bn over 2017 levels, boosting purchases of agriculture by $32bn, manufacturing by $78bn, energy by $52bn and services by $38bn.
- China has agreed to take more action against counterfeiting and make it easier for companies to pursue legal action over trade secret theft
- The US will maintain up to 25% tariffs on an estimated $360bn worth of Chinese goods; China, which has levied new tariffs on $100bn worth of US products, is also expected to maintain the majority of them